Regulatory Alerts2014-03-05
Added · Updated
Real estate financing initiative for the benefit of low- and middle-income people
The Central Bank of Egypt allocates 10 billion Egyptian pounds for long-term private real estate financing for low- and middle-income individuals in new urban communities, with interest rates capped at 7% for low-income and 8% for middle-income borrowers. Eligible middle-income applicants must have a monthly income not exceeding 8,000 EGP for individuals or 10,000 EGP for families, with unit values capped at 300,000 EGP. The initiative prohibits the sale of loan portfolios generated under this scheme and extends the mandatory revaluation period for collateral to every five years. Subsidy repayment is adjusted based on market rates if units are sold or loans repaid within five years of disbursement.