EGP59.43 billion.. Bank and corporate financing in the real estate financing initiative

The companies pumped financing worth 2.333 billion pounds to about 19.108 thousand customers.

 The National Bank of Egypt came at the forefront of the initiative, with a financing value of EGP 16.012 billion within the initiative.

The Bank of Egypt, Development and Housing came second and third, with a value of 14.300 billion pounds for the first and 6.780 billion pounds for the second.

Data issued by the Real Estate Finance Fund showed that the number of beneficiaries of financing in the 7% and 3% annual initiatives, on a decreasing basis, amounted to about 509.7 thousand customers until last May.

Real estate financing initiatives

The financing provided by 22 participating banks in the two real estate financing initiatives for low-income individuals increased to about EGP 57.1 billion, with 490.6 thousand customers until the end of last May, accounting for 96% of the total financing provided in the two initiatives.

While the financing provided by 8 real estate finance companies for low-income people remained about 2.3 billion pounds, with 19.1 thousand clients, accounting for 4% of the total volume of financing.

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.

3% initiative

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

Real estate financing and factoring

In related context, The Financial Regulatory Authority issued Decision No. 1473 in 2023, regarding granting the Commercial International Finance Company a license to practice real estate financing and factoring activities.

The Authority’s Board of Directors Decision No. 137 of 2018 was also approved regarding the controls for granting and continuity of licenses for financial leasing and factoring companies.

The Authority approved the registration of the Commercial International Company in the Real Estate Finance Register under No. 22 for the year 2023, and in the Discounters Register under No. 38 for the year 2023.

For its part, The Financial Regulatory Authority issued Decision No. 1466; Regarding the re-formation of a permanent committee to settle disputes in the field of insurance, real estate finance and financial leasing.