The new mortgage financing programme is directed at low- and middle-income Egyptians to support their ability to own housing units, through long-term loans with interest rates below 3%
Egyptian President Abdel Fattah Al-Sisi directed the Central Bank of Egypt (CBE) to launch a new mortgage finance programme with a 3% interest rate as he met officials from the institution on Sunday.
CBE representatives at the meeting included Governor Tarek Amer; Deputy Governor Gamal Negm; Deputy Governor Rami Abul Naga; and Sub Governor May Abulnaga.
A review was undertaken of the CBE’s activities as part of the state’s monetary and financial system.
The new mortgage financing programme is directed at low- and middle-income Egyptians to support their ability to own housing units, through long-term loans of up to 30 years with interest rates below 3%.
For his part, Amer presented the CBE’s efforts in the past, especially during the pandemic.
He stressed that the current situation regarding foreign cash reserves is strong and safe, which has led to a stability of exchange rates and the achievement of proper liquidity in foreign exchange.
Amer said that this improvement has allowed Egypt to overcome the repercussions of pandemic. President Al-Sisi praised the CBE’s performance in this context, with the latter’s efforts in line with all government institutions and the state’s economic interest.
Additionally, the meeting handled the results of the presidential initiative launched in 2015 for micro, small and medium sized enterprises (MSMEs). The total volume of financing for these enterprises amounted to nearly EGP 234bn, with 1.260 million commercial and industrial establishments benefiting from the initiative. It contributed to providing nearly one million job opportunities.
The President instructed for an additional EGP 117bn to this funding in the current and next year.
Amer presented the CBE’s efforts to develop and restructure the Agricultural Bank of Egypt (ABE). This came in addition to the support for 320,000 farmers whose debts were written off, amounting to nearly EGP 660m.
Moreover, the CBE directed an amount of EGP 4.5bn at low interest rates to small agricultural projects, developing and modernising irrigation methods, and contributing to modernising dairy collection centres.
Apart from this, the CBE allocated EGP 2.5bn to developing livestock projects, in addition to EGP 3bn for the National Veal Project.
The President was also briefed on the CBE’s efforts regarding financial inclusion, in addition to the savings and loan group project. A large number of women have benefited from the latter project.
Al-Sisi had directed for this vital project to be developed, and for the maximisation of its financial resources to increase the numbers of its beneficiaries.