Egypt’s IDWBE Bank financed 1,000 low-cost homes, 3,000 more soon

Egypt’s state-run Industrial Development Bank (IDWBE) says it has secured mortgage finances for 1000 housing units in favour of low-income citizens as part of the central bank’s social housing initiative.

The finances were at value of 100 million Egyptian pounds ($11.2 million), IDWBE’s executive board member Hamdy Azzam told Amwal Al Ghad on Thursday.

In 2014, Egypt’s central bank earmarked 10 billion pounds ($1.2 billion) to finance mortgages for people on low and middle incomes, in a bid to boost the country’s construction and real estate sectors. Banks will acquire the money from the central bank 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.

The Mortgage Finance Fund (MFF) will provide IDWBE with more 3000 units in the coming few days to finance more clients as part for central bank’s initiative, Azzam added.