60 billion EGP .. Supporting banks and companies for the Central Bank's initiative for real estate financing

Banks and companies participating in the real estate financing initiative for low-income people have pumped funds to purchase housing units at a value of 60.07 billion pounds, for about 513.6 thousand customers, until the end of June 2023.

Financing initiative

The Central Bank of Egypt launched a real estate financing initiative in February 2014 with a subsidized decreasing interest rate for low- and middle-income segments, with an interest ranging from 5 to 7%.

The Mortgage Finance Guarantee Fund provides the housing unit for the low-income segment, and determines the price of the housing unit according to its construction costs.

In 2021, President Abdel Fattah El-Sisi instructed the Central Bank to formulate and launch a new real estate financing program for the benefit of low- and middle-income groups to support their ability to own housing units, through long-term loans of up to 30 years, with a low and simplified interest rate not exceeding 3%.

The initiative includes several conditions, most notably providing the necessary real estate financing to customers who meet the conditions of the initiative through banks or real estate finance companies at a return rate of 3% “calculated on a decreasing basis” for a maximum period of 30 years.

Mai Abdel Hamid, head of the Social Housing and Real Estate Finance Support Fund, said in exclusive statements that the 22 banks participating in the initiative pumped about EGP 57.740 billion until the end of last June, benefiting about 494.492 thousand customers from these funds.

Social Housing

The head of the Social Housing Fund explained that real estate finance companies pumped real estate financing to low-income people at a value of EGP 2.33 billion, benefiting about 19.1 thousand customers, accounting for 3.9% of the total financing within the initiative.

Financing initiative

In related context, the 4 largest participating banks in the real estate financing initiative for low-income individuals pumped financing worth EGP 41.3 billion by the end of June 2023, with a share of 68.7% of the total bank financing within the initiative.

The National Bank of Egypt topped the list of banks that granted the most financing within the initiative, with loans exceeding 16.159 billion pounds, to more than 137.9 thousand customers, with a share of 26.9%.

While Banque Misr’s financing amounted to 14.47 billion pounds for about 118.3 thousand customers, with a share of 24.1%, followed by the Housing and Development Bank, with financing of 6.8 billion pounds for about 71 thousand customers, with a share of 11.3%.

While Banque du Caire pumped financing within the initiative at a value of 3.8 billion pounds, to about 38.4 thousand customers, with a share of 6.4% of the total financing of banks within the initiative.

Banks and companies participating in the real estate financing initiative for low-income individuals have pumped funds to purchase housing units at a value of EGP 60.07 billion, for about 513.6 thousand customers, until the end of June 2023.