EGP 70.6 Billion Invested in CBE’s Affordable Housing Initiative
The initiative offers subsidised interest rates for low and middle-class segments of society.
The Central Bank of Egypt’s Social Fund and Mortgage Finance Fund (MFF) reported that banks and companies participating in the affordable housing mortgage initiative have collectively invested EGP 70.6 billion into the fund, which benefited over 573,000 clients by the end of June 2024.
The MFF highlighted that banks contributed EGP 68.17 billion to approximately 553,450 clients, accounting for 96.5% of the initiative. Meanwhile, mortgage finance companies contributed EGP 2.5 billion, benefitting around 19,500 clients, which makes up 3.5% of the initiative.
The mortgage finance initiative was launched by the Central Bank of Egypt in February 2014, offering subsidised declining interest rates for low and middle-income segments of society, with rates ranging from 5% to 7%. The fund also provides housing units for the low-income segment, determining unit prices based on construction costs.
In 2021, directed by President Abdel Fattah Al-Sisi, the CBE launched a new mortgage finance program to assist low and middle-income groups in acquiring housing units. This program offers long-term loans of up to 30 years with low interest rates not exceeding 3%.
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