Banks decide to link the financing of housing units to opening savings certificates

A number of Egyptian banks decided to link the financing of housing units to opening savings certificates instead of paying cash and benefiting from the return from them on paying installments, with the possibility of receiving the housing unit immediately after opening the certificate.

In letters addressed to customers, the banks mentioned the possibility of benefiting from linking the savings certificates to the value of the housing units with the real estate financing system, with a maximum of 90% of the value of the certificates, and a maximum financing period of 15 years.

 The banks also specified that the financing of housing units, once linked to the certificates, will be applicable to clients allocated to them housing units in the Dar Misr, Sakan Misr Project, and Jannah Misr projects.

This step comes from the banks as a kind of attracting financial liquidity, in addition to increasing their financial revenues by opening new certificates for their clients.

The financing of banks and companies joining the Central Bank of Egypt’s initiative for real estate financing for low and middle-income people, until 3/30/2023, reached about 57 billion and 67 million pounds, with a total of 449,363 thousand beneficiaries.

5 banks acquire 74% of the two real estate financing initiatives

5 banks acquired 74.1% of the total of the two real estate financing initiatives for the low-income segment by the end of March 2023.

 According to data issued by the Real Estate Finance Fund, Al-Ahly, Egypt, Cairo, Housing and Development, and Commercial International Banks, pumped financing of about 42.7 billion pounds out of a total of 57.67 billion pounds until the end of last March 2023, in the two real estate financing initiatives.

The number of beneficiaries in the two real estate financing initiatives in 5 banks amounted to about 379.6 thousand beneficiaries, out of a total of about 499.4 thousand beneficiaries customers in the initiative until March.

22 banks and 8 real estate finance companies are participating in the real estate financing initiative for low-income people.

The shares of the 5 largest banks participating in the two real estate financing initiatives until the end of last March were as follows:

- The National Bank of Egypt: pumping financing of about 15.7 billion pounds to the number of beneficiaries exceeding 135 thousand customers, to acquire 27.2%, to be at the forefront of the financing provided in the initiative at the level of banks and companies.

- Banque Misr: pumping financing of about 13.7 billion pounds to 113.5 thousand beneficiaries, coming in second place with a share of 23.7% of the total financing of the initiative.

- Housing and Development Bank: pumping financing of about 6.7 billion pounds to 70.6 thousand clients, to acquire 11.7% of the total financing in the initiative.

- Banque du Caire: pumping financing of about 3.5 billion pounds to 36.5 thousand beneficiaries, acquiring 6.1% of the total financing in the initiative.

- Commercial International Bank: Pumping financing of about 3.1 billion pounds to 23.9 thousand customers, to acquire 5.4% of the total financing in the initiative.

The Central Bank had officially launched the real estate financing initiative with decreasing interest at 3% annually in July 2021, allocating a segment of 100 billion pounds to it to finance the middle and low-income segment, before the interest support was transferred to the Ministry of Housing, Utilities and Urban Communities.

before the 3% initiative, the Central Bank allowed in 2014 an initiative for real estate financing for low-income people, with an interest rate of 7% on a decreasing basis, and the Ministry of Finance is responsible for subsidizing the interest from 2019 after the central bank stopped.