2018-09-09

A circular dated September 6, 2018 regarding financing controls for installment sales services companies

On September 6th, 2018, the CEO/Chairman of the Central Bank of Egypt addressed concerns about mortgage lending companies not being regulated which may result in increased default rates and higher lending interest rates. As a response, the Central Bank Board issued guidelines on September 15th, 2018, requiring banks to only finance mortgage lenders with local currency. The six directives from March 22nd, 2018 included requiring companies to provide financial reports by certified accountants, and for banks to include mortgage lenders in their credit rating systems. These changes aimed at increasing transparency, reducing risk, and ensuring that the companies have the necessary financial stability.

Egypt

Central Bank of Egypt

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