Regulatory Alerts2019-02-24
Added · Updated
Circular dated February 21, 2019 regarding the rules and procedures for the real estate financing initiative for low-income people
The Central Bank of Egypt extends the real estate financing initiative for low-income borrowers to loans approved after January 2019, requiring banks to fund these loans using their own resources at subsidized interest rates of 5% or 7% for a maximum term of 20 years. The Bank compensates commercial banks for the interest rate differential based on the Central Bank’s Corridor-Mid rate plus 2%, excluding administrative fees and commissions from the compensation calculation. Banks must adhere to strict credit assessment rules, including digital scoring, single-unit purchase restrictions via a central registry, and specific provisions for early repayment and default penalties.