Regulatory Alerts2016-02-25
Added · Updated
Circular dated February 24, 2016 amending the real estate financing initiative for low- and middle-income people
The Central Bank of Egypt amends its real estate financing initiative by introducing a new 'above-average' income tier with a maximum monthly income of 15,000 EGP per individual or 20,000 EGP per family, and a maximum unit price of 950,000 EGP. The circular lowers final lending rates to 5% for low-income borrowers, 7% for middle-income, and 8% for the new above-average tier, while allowing banks to cover credit risks via collective insurance policies for clients lacking income proof. Additionally, it removes the 20% portfolio limit for companies, permits the sale of financing portfolios, treats maintenance deposits as part of the loan for low-income units, and exempts banks from repaying subsidies in the event of a borrower's death.