Regulatory Alerts2012-05-21
Added · Updated
Controls and rules of bank financing for real estate development companies working in the field of constructing residential units for the purpose of selling them
The Central Bank of Egypt mandates that banks must fully comply with Decision No. 1906 of 2007 regarding financing for real estate developers constructing residential units for sale, effective October 2, 2007, including existing credit facilities. The rules prohibit banks from providing financing for residential units until they are delivered with all project facilities completed, and ban the use of personal loans to finance undelivered units. Banks are required to separate developer financing from buyer financing, base credit decisions on construction costs rather than sales value, and apply specific risk weightings to project leverage ratios exceeding 1:2.
More like this from CBE
CBE published 2 documents in the last 30 days. We email you each new one the day it's published.