The banks operating in the Egyptian market had allocated 20 billion EGP in February 2014 for low and middle income categories allocated to the Egyptian Central Bank (CBE) mortgage initiative. The amount of CBE has been depleted.

The CBE has launched the initiative with the aim of providing long term financing up to 20 years with an interest of 5-7% for low income and 8% for middle income housing, before introducing an upper middle category with an interest of 10.5%. The CBE allocated EGP 10bn in the first phase of the initiative, and then added more EGP 10bn, bringing the total financing to EGP 20bn.

CBE decided to limit it for only the low income category excluding the middle and upper middle income categories. According to a news in Daily News Egypt’s, National Bank of Egypt (NBE) leads the list of banks participating in the initiative, with a total financing of about EGP 5.3bn to 54,000 clients, followed by the Housing and Development Bank with total financing of EGP 4.4bn to 50,000 clients.

The list of banks in the initiative included Banque Misr, Banque du Caire and Industrial Development Bank.

Source: Daily News Egypt

Fulya Altunyay/ [email protected]