Egypt expects new tranche of World Bank mortgage loan in June

Egypt’s Mortgage Finance Fund (MFF) expects to receive a new instalment of its $1 billion World Bank loan programme in June, chairperson said on Monday.

The move expected to unlock a $500 million disbursement, MFF’s chairperson May Abdel Hamid said on the sidelines of Cityscape Egypt Conference in Cairo.

The loan is to support Egypt’s mortgage finance sector, whereby World Bank has disbursed $250 million along with additional $250 million received in tranches, Abdel Hamid added.

Established in 2003, MFF is one of the most important funding programmes offered by the state. It seeks to support activities in real estates, notably for low and middle income-citizens.

MFF received funds estimated at $18.5 billion pounds from banks and mortgage finance firms among the first stage of the Central bank of Egypt mortgage initiative, she added.

Egypt’s central bank launched an initiative in 2014 worth 10 billion pounds ($1.4 billion) in the mortgage sector to finance housing purchases for middle and low-income earners.