The Commercial International Bank – CIB is allocating EGP 500 million (around $70mn) for the housing finance initiative of the country’s Central Bank, a source with knowledge of the bank’s decision told Amwal Al Ghad. The largest private-sector lender in Egypt is set to finance low-and-middle-income housing projects.
Last February, the Central Bank of Egypt (CBE) announced that it had allocated EGP 10 billion ($1.44 billion) to finance low-income housing projects, with the aim of boosting the construction and real estate sectors.
Speaking to Amwal Al Ghad on Tuesday, the banking source stated that his bank had already signed on the Central Bank’s initiative in August and recently signed an agreement with the Egyptian Mortgage Finance Fund to finance low-income housing projects.
As pursuant to the CBE’s initiative, low-income citizens, who qualify to benefit from the programme, will be lent the money at yearly interest rate of 7% to 8%.