Egypt’s banks pump $1.5bn among CBE’s mortgage initiative by Sept-end

Egypt’s local banks injected 26  billion Egyptian pounds (US$ 1.5 billion) in favour of the central bank’s low-income mortgage initiative by the end of September 2019, Mortgage Finance Fund (MFF) chairman May Abdel Hamid.

During 2014, CBE has launched an initiative worth 10 billion Egyptian pounds (US$1.4 billion) to stimulate the mortgage sector and finance the purchase of housing for earners with low and average incomes.

In March 2014, four local Egyptian banks, namely the National Bank of Egypt, Banque Du Caire, Banque Misr and Housing and Development Bank, have signed agreements with MFF worth 8.5 billion Egyptian pounds to finance low and average incomes’ earners at annual interest rate between 8 percent and 7 percent.

CBE has amended the mortgage finance initiative to provide an opportunity for those who earn less than EGP 1,400 per month to benefit from the initiative at a discounted annual interest rate of 5% instead of 7 percent.