Cairo: 27 November 2016

Dear Sir,
Chairman of the Board of Directors

Greetings,

I would like to refer to the Real Estate Finance Initiative for Low and Middle-Income People, issued by a decision of the Board of Directors of the Central Bank of Egypt in its meeting held on February 18, 2014, and subsequent decisions in this regard, and referring to the latest amendment to the Initiative issued by a decision of the Board of Directors in its meeting held on February 17, 2016. In light of the Central Bank of Egypt's desire to facilitate real estate financing procedures for low-income individuals and increase the sales rates of units allocated to this segment, where it was noted that there are varying conditions and terms applied by banks when dealing with applicants wishing to benefit from the Initiative, the Central Bank of Egypt has deemed it necessary to issue unified conditions that banks must adhere to when granting real estate financing to low-income individuals, according to the attached table (Attachment 1).

In light of the difficulty observed for pensioners, their beneficiaries, and self-employed individuals in obtaining financing under the umbrella of the Real Estate Finance Initiative, either due to low income or the difficulty of proving it, the attached conditions address how to deal with these categories within the framework of the Initiative.

In light of the above, please be kind enough to take the necessary steps regarding the strict adherence to the attached conditions when granting new bank financing, without applying them to existing financing, except where the Bank deems it necessary to amend what is currently in place. The Bank has granted a grace period of three months from the date of issuance to apply the attached conditions to new financing.

Please accept my highest regards,

Gamal Naguib

Unified Conditions for Granting Real Estate Financing to Low-Income Individuals
Target Categories
Acceptance of financing for all professions.
Financing Amount
The value of the residential unit shall not exceed 85% of the value of the residential unit.
Repayment Period
A period of up to 25 years from the date of issuance of the contract, as the maximum period for dealing with the income certificate.
For pensioners: A period of up to 25 years from the date of issuance of the contract, provided that the pensioner is not more than 6 months away from retirement.
For employees in the private and public sectors: 6 months.
Service Period
One year for holders of free professions and current activity.
Guarantees
Government guarantees are not permitted.
Banks are permitted to issue a policy for group life and disability insurance, with the bank bearing the cost.
Family Financing
In the case of requesting financing for the family (husband/wife), the financing shall be recorded in the name of both partners in the contract on the unit.
Income Deduction
Deduction of income shall not exceed the limit determined as a maximum of 40% for financing granted to urban and rural real estate estates for the benefit of the beneficiary under the framework of Law No. 148 of 2001 issuing the Real Estate Finance Law and its Executive Regulations (Monthly after deducting taxes and social insurance + percentage not less than 10% and not exceeding 50% of the beneficiary's additional income, which does not exceed the percentage of the monthly income per person (from the additional income and not exceeding the monthly), the percentage determined for low-income limits (40%).
Income Calculation
For all net income known to be: The value of the loan shall be calculated according to the pension amount (Basic income + Additional) without deducting any amounts on the pension system of the Real Estate Finance Fund, and the financing entity shall calculate the return on financing.

Attachment (1)

Banks
Conditions
(5% or 7%)
Percentage of the income known to be from the pension.
It is designed at 20% of the additional income with consideration of the following:
- In the case of dealing with the income certificate, the value of the income is calculated according to the value of the loan, and the bank calculates the return on financing (5% or 7%) and the value according to the net.

---

[RegAlert note: the English text above is a translation of the first 24,000 characters of a 45,669-character original (53% of the document). The remainder was not translated. The complete original-language text is stored with this document.]