The Central Bank of Egypt (CBE) will reintroduce subsidized mortgages worth EGP 50 bn for middle-income individuals, thereof, a committee of members from the bank, local banks, and real estate developers will be formed to discuss the specifics of financing, Invest-Gate reports.

The mortgage financing program, which is aimed at subsidizing mid-income housing units, is meant to support the real estate sector to expand projects that “will have an economic impact in employment, gross domestic product (GDP), and the economy,” according to an official statement on June 2.

On April 15, CBE agreed to offer preferential interest rates of 10.5% to prospective homeowners, starting from July, Chairman of Real Estate Development Chamber and Rooya Group’s CEO Hisham Shoukri announced back then.

Earlier in February, Ministry of Housing revealed that it was studying other alternatives for the state’s limited mortgage finance system, taking into account the initiatives and suggestions proposed by some real estate developers, including launching a fund to support interest rates of real estate’s finance, as well as others, in order to modify the current initiative.