National Bank of Egypt has provided mortgage finance for 1065 clients worth EGP 300.000, Head of NBE's Retail Risk Group Karim Soos announced Tuesday. This comes in accordance to the initiative launched by Central Bank of Egypt (CBE) to fund mortgages for people on low and middle incomes, Soos said. CBE has allocated 10 billion Egyptian pounds (US$1.4 billion) for the initiative. The initiative aims to boost the construction and real estate sectors. Through the initiative, banks will acquire the money from CBE over a 20-year period at low prices and re-lend it to low earners at a seven percent decreasing rate of return and to middle earners at eight percent. Low income eligibility will depend on conditions specified in Law 148 (2001), while middle earners can take mortgages worth up to EGP300, 000 (US$43,000). Soos stated that NBE has approved financing 2.000 requests and is expected to finance the rest of the approved requests within the upcoming period. Among the approved 1065 requests, the bank has granted only eight cases for middle earners, the head said. Soos pointed out that the sector is facing a problem represented in the slow procedures contrary to granting personal loan that enables the bank to grant one thousand loans in 72 hours. Moreover, Soos urged the banks to form unites including representatives of notary office and cities municipal to facilitate the procedures of granting mortgage for the clients.
