Regulatory Alerts2014-08-20
Amending the maximum number of units to be financed for middle-income people within the framework of the real estate financing initiative
In a letter dated August 19, 2013, the Chairman of the Board of Directors of a bank in Cairo, Egypt, Mr. Hisham Ramez Abdel Hafez, refers to a previous correspondence dated February 19, 2013, regarding an initiative for mortgage financing for middle-income earners. He mentions that the Central Bank of Egypt is keen to remove any obstacles that may hinder the achievement of the initiative's goals. To that end, he proposes an amendment to the first paragraph of the initiative's terms and conditions, suggesting that the maximum monthly income for middle-income individuals be set at 8,000 Egyptian Pounds, and for families at 10,000 Egyptian Pounds, with the value of the financed unit not exceeding 110,000 Egyptian Pounds. This amendment aims to ensure that the initiative reaches a larger segment of eligible applicants and contributes to the desired impact on the real estate market.