Banque Misr and the Real Estate Development Chamber at the Federation of Egyptian Industries (FEI) signed on June 17 a cooperation protocol to stimulate local real estate financing, Invest-Gate reports.
Under the deal, which conforms with the Central Bank of Egypt’s (CBE) initiative to support middle-income home buyers, Banque Misr will extend mortgages at an 8% descending interest rate, along with other property financing instruments, according to a recent official statement.
Banque Misr will also grant real estate financing to the chamber’s members, who do not fall under the central bank’s initiative, the statement noted.
The state-run bank’s move is part of its keenness to spur the Egyptian real estate market and provide adequate housing for all segments. The agreement also comes in line with the CBE’s endeavors to facilitate the provision of affordable housing.
In the presence of Executive Director of FEI Osama Ragab and Head of the Retail Banking Sector at Banque Misr Hind Fahmy, the protocol was inked between Banque Misr Chairman Mohamed El Etreby and FEI’s Chairman Tarek Shoukry.
In Q3 2019, Egypt’s mortgage financing reached EGP 650 mn, up 67.6% from the EGP 387.8 mn logged in the prior-year period, the Financial Regulatory Authority (FRA) announced in a previous statement.