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Mortgage loans increased to EGP16bn, low-income earners got the lion share

Wednesday 27 June 2018 08:37 PM

Mortgage lenders
Mortgage lenders

By Ahmed El-Desouky
Loans provided in the framework of mortgage initiative unleashed by the Central Bank of Egypt in 2014 jumped to EGP16bn late May.
 19 banks, spearheaded by Housing & Development Bank, the National Bank of Egypt, Misr Bank, Banque Du Caire, Industrial Development Bank, Workers Bank, and the United Bank, in addition to seven mortgage financiers including Al Ola, NBE, Al-Ahly United Bank, Contact, Amlaak, El-Masria Co. and the Arab African Bank.
"Low-income earners got the lion share of the EGP16bn funds, whereas a slight share was extended  to medium-income earners," informed sources told Al-Mal newspaper, expecting a second tranche of the initiative to be launched late this year but renewing the initiative appears unlikely.
Initially earmarking EGP10bn for the initiative, CBE upped funding to EGP20bn, as low and medium-income earners were given 7 and 8% interest rates respectively, and  earners with less than EGP1400 monthly income were given as of last February  loans with a decreasing 5% interest per year.