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NBE is poised to extend EGP1bn loans to low-income earners

Tuesday 03 July 2018 07:35 PM

Karim Sous
Karim Sous

By Al-Mal
The National Bank of Egypt is mulling the injection of new loans worth EGP1bn within initiative unleashed by the  Central Bank of Egypt back in 2014.
" The new financing will be extended to up to 10,000 low-income earners, as clients profiles are being evaluated right now," head of retail credit risks Karim Sous told Al-Mal newspaper.
The National Bank of Egypt has poured in up to EGP3.7bn funding into the CBE's  real estate initiative to the advantage of more than 37,000 clients, he continued.
With  NBE  ranked second among Egyptian banks in terms of participation in CBE's initiative, low-income earners have got the lion share of financing, he added.
"NBE is conducting intensive talks with Ministry of Finance pleading the latter's commitment to cut interest rates of CBE's initiative with the aim of helping low and medium-income earners obtain more affordable housing units," deputy CBE's chairman Lubna Helal told Al-Mal newspaper late last week.    
CBE seeks to renew its real estate initiative upon the consumption of a second tranche worth EGP10bn, she added, explaining that CBE has pumped up to EGP14.5bn since the initiative was kicked-off.
The real estate initiative, unleashed   back in February 2014 with  EGP100bn appropriations then EGP20bn, extends 7 and 8% interest  loans to low and medium-income earners. By February, the initiative permitted clients with lower than EGP1400 income to get loans against an annual 5%  interest rates.