LE 1.4 billion mortgage finance during 2017

CAIRO - 16 January 2018: The amount of mortgage finance granted by mortgage finance companies until the end of November 2017 reached LE 1.4 billion compared to LE 950 million during the same period last year, with an increase of 46 percent, the Chairman of the Egyptian Financial Supervisory Authority (EFSA) Mohamed Omran announced in a press conference on Tuesday.

The total amount of real estate financing granted by companies since the beginning of the real estate finance activity reached LE 8.3 billion compared to LE 6.8 billion during the corresponding period last year, with an increase of 23.2 percent, Omran added during his speech at the Egyptian Financial Regulatory Authority conference.

He further clarified that the value of leasing contracts up to the end of November 2017 reached LE 24.2 billion compared to LE 19.1 billion during the same period last year, marking an increase of 26 percent. Also, the total volume of discount paper increased to LE 7.8 billion during 2017 compared to LE 5.5 billion in the previous year, marking an increase of 42 percent.

The chairman of EFRA announced that the strategy of Egypt for non-bank financial services is about to end, which will be announced within 30 days, adding that the strategy sets the goals and plans of executive management until 2021.

Moreover, Omran said that the size of microfinance for NGOs and finance companies amounted to LE 6 billion, benefiting two million citizens through 880 civil associations and three licensed companies to engage in activity, noting that there are three other companies which applied for a license to practice the activity.

Omran stated that the new insurance law considers increasing the number of compulsory insurance coverage to increase the volume of premiums in the local product, adding that among the new compulsory documents are insurance for school and university students, activation of the provision of the Sports Law for Sports Facilities Insurance.

The goal of the EFRA conference was to discuss its achievements through fiscal year 2017.