FinMin: Egypt economy expands, budget surplus at record high    Egyptian pound ticks down in early Tuesday trading    Egypt, Senegal sign pharma MoU to unify regulatory standards    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    CIB completes fifth securitisation issuance for B.TECH worth EGP 859.4m    Madbouly reviews legalisation of newly annexed lands to new cities, housing offerings    Egyptian Countryside Development chief discusses cooperation with Italian ambassador    Roche helps Egypt expand digital pathology and AI diagnostics    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt exports 175K tons of food in one week    Egypt, Somalia discuss closer environmental cooperation    Egypt's Health Minister reviews upgrades at Gustave Roussy Hospital    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, France FMs review Gaza ceasefire efforts, reconstruction    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



CBE limits mortgage initiative to low-income after earmarked EGP 20bn runs out
NBE, HDB, Banque Misr, Banque du Caire, IDB top list of banks participating in CBE initiative with total funding of EGP 15.7bn to 165,800 clients
Published in Daily News Egypt on 31 - 01 - 2019

Banks operating in the Egyptian market have run out of the EGP 20bn earmarked for the Central Bank of Egypt (CBE) mortgage initiative for low and middle-income categories launched in February 2014.
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.
After the embarked value ran out, the CBE decided to limit it for only the low-income category excluding the middle and upper middle-income categories.
According to the latest available data on the initiative, the 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 top-five banks in the initiative also included Banque Misr, that provided EGP 3.5bn of funding to 34,000 clients; Banque du Caire, that offered EGP 1.7bn to 20,000 clients; and the Industrial Development Bank, with EGP 800m funding to 17,800 clients.
Excluding the middle and upper middle-income will lead to a major crisis in the government's housing projects, such as Dar Misr (Home of Egypt) and Sakan Misr (House of Egypt), as they neither delivered their units nor started funding procedures.
The CBE had introduced amendments to the initiative in June 2017, as the low-income category was split into two subcategories: employees paid up to EGP 2,100 per month – who can receive mortgage finance with a declining interest of 5%, while the second subcategory included employees earning up to EGP 3,500 per month, if single, and EGP 4,750 per month, if married, to give them access to mortgage finance with a declining interest of 7%.
In February 2018, the CBE allowed mortgage funding for those earning below EGP 1,400 through the initiative with a declining interest of 5% per year.
The CBE also provided a new category, upper middle income, with a lower annualised yield than other groups of 10.5%, as long as the maximum income is EGP 15,000, if single, and EGP 20,000 for families, while capping the maximum price of these units at EGP 950,000.


Clic here to read the story from its source.