The Ministry of Investment announced the completion of the first phase of its non-banking financial reform program, which extends to 2012. Meanwhile, mortgage loans made a record rise to LE4 billion during the 2009/10 fiscal year, which ended in July.
In its annual fiscal report, the investment ministry said the average stipulated lifespan of mortgages increased to 16 years during 2009/2010, up from 11.9 in 2004/2005. It attributed the increase to reforms implemented in recent years.
According to the report, the Investment Ministry's reforms include specification of criteria for estimating debtor income, qualifying brokers, and providing liquidity for the institutions working in the field–13 lending firms and 19 banks–by the end of the last fiscal year.
Establishment of the Egyptian Mortgage Refinance Company, which managed to sign on four re-finance contracts worth LE376 million, was also part of the reform package.
The Minister of Investment, Mahmoud Mohie Eddin, said last year he witnessed growing Egyptian real estate activity. He noted that finance totals provided by the Egyptian real estate fund stood at LE51.7 million during 2010, compared to about LE1.4 million in 2006.
Mohie Eddin pointed that LE1.65 billion have been allocated to support 65,000 housing units over the next three years. The ministry signed a contract to support another 49,300 units for low-income families in different provinces. The minister described the move as a major shift in mortgage finance policy.
Translated from the Arabic Edition