The Arab Investment Bank (AIBK) is participating in the Central Bank of Egypt (CBE) initiative to activate mortgages with a share of EGP 300m, according to Adel Taha, AIBK’s SME Sector Head.
Taha told Daily News Egypt that the bank intends to increase its share up to EGP 400m, and there are requests on mortgage amounting to EGP 25m for low-income funding.
The bank has a large number of housing units customised by the Mortgage Finance Fund (MFF), which has reached 420 units under financing in the 10th of Ramadan City, Taha added.
He noted that the bank finances projects in 10th of Ramadan City, Badr City and 6th of October City.
“The AIBK’s portfolio for the SMEs sector reached EGP 500m, and it will be raised to EGP 1bn during the coming period,” added Taha. “The bank has a programme called Shorakaa, for funding all projects and SMEs.”
He confirmed that the bank is participating in new and renewable energy projects, and has a line of cooperation with the Social Insurance Fund (SFD) worth EGP 80m.
AIBK announced earlier in June the preparation of a comprehensive plan for the development of sectors and launching new branches during this year.
AIBK’s management gained the CBE’s approval to open 17 new branches, including 12 small branches and five large ones to cover all the important areas in Egypt, and offer the best service to customers.
In February 2014, the CBE announced it had allocated EGP 10bn ($1.44bn) to finance low-income housing projects, with the aim of boosting the construction and real estate sectors.
The money will be sent to the banks in the form of deposits, over a period of 20 years at low interest rates. Low-income citizens who qualify to benefit from the programme will be lent the money at yearly interest rate of 7% to 8%.