CBE Announces Unified Conditions for Real Estate Financing

CBE Announces Unified Conditions for Real Estate Financing

The Central Bank of Egypt (CBE) has announced unified conditions that banks should abide by when providing real estate financing for citizens with limited incomes, according to a statement released by the CBE, reported Al Borsa.

The conditions were issued in efforts to tackle challenges that are faced by retired citizens and people with freelance professions in securing financing for housing as a result of low incomes or difficulty in documenting their incomes. As such, the CBE announced these conditions to overcome such obstacles, within the framework of the CBE funding initiative that was announced last year.

The new funding conditions include alleviating the requirements for government insurance, whereby the banks are permitted to issue an insurance policy guaranteeing the payment of loans in cases of death or defaulting due to financial inability. Banks are also obliged to employ the increasing premium system throughout the financing period.

The CBE has provided all banks with three months to start preparing for the implementing the new conditions.

Citizens with freelance or independent professions were also requested to fill out an income certificate through an accountant licensed by the Egyptian Registry for Accountants and Auditors.

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