During her participation at the economic conference” People and Banks”,  Head of Social Housing and Mortgage Finance Fund (SHMFF) Mai Abdel Hamid reviews the fund’s achievements in several fields, including financing social housing, eliminating slums, supporting marginalized groups, and empowering women, Invest-Gate reports.

According to the ministerial statement, Abdel Hamid has participated in a session entitled “The Role of the Central Bank’s Initiatives in Supporting the Egyptian Economy during Crises” as part of the activities of the “People and Banks” economic conference, in its 15th edition, titled “The Role of the Banking Sector in Supporting Sustainable Development”.

Abdel Hamid declares that the social housing program includes half of the banking sector’s activities in Egypt, in addition to the participation of real estate finance companies.

Furthermore, Abdel Hamid indicates that the first real estate financing initiative was launched in 2014 until 2019, with a value of EGP 20 bn, at an interest rate of 7%. The beneficiaries’ rate of this initiative reached 2,000 clients in the first year; however, the current beneficiaries’ rates have reached 6,000 – 7,000 clients on a monthly average.

Due to the high prices of units and the various housing challenges, the new presidential initiative for real estate financing has been launched at an interest rate of 3% and a financing term of up to 30 years. Moreover, banks and the Ministry of Finance have financed an interest rate differential of EGP 1.3 bn since 2019, Abdel Hamid states.

In view of the real estate finance initiative’s role in eliminating slums, Abdel Hamid highlights that the new initiative provides  EGP40 bn for low-income. Besides, the initiative’s value has reached EGP 250 bn, and 384,000 customers have received cash support from SHMFF deducted from the unit price.

She further notes that the initiative will create a protective umbrella, for the low-income category, from the expected inflationary wave.

Additionally, Abdel Hamid explains that the SHMFF has succeeded in granting the right to own housing to different groups, who faced difficulties to obtain a unit in the past, such as individuals who do not have proof of income. Noting that the liberal professions present 18.5% of the SHMFF’s beneficiaries, 33% of them are government employees, and the rest are from the private sector. She remarks that most of the social housing program beneficiaries are young people, as the average age ranges from 21 to 50 years. In regards to women’s support, Abdel Hamid confirms that women constitute 22% of the SHMFF beneficiaries.

Abdel Hamid concludes her speech by confirming that the coming period will witness the delivery of a larger number of units with the participation of more banks and offering units for middle-income people and in cooperation with the New Urban Communities Authority (NUCA).