City Edge Developments signs a cooperation protocol with Credit Agricole for mortgage financing over 20 years
As part of the mortgage finance initiative launched by the Central Bank of Egypt (CBE), City Edge Developments signed a cooperation protocol with Credit Agricole Bank. The protocol aims at financing real estate units for medium housing through long-term loans at low interest to ease the burdens of owning a house on citizens and to expand the circle of obtaining adequate housing.
The protocol signing was attended by Dr. Mohamed El- Mikawi, CEO of City Edge Developments and Mr. Walie Lotfy, Deputy Managing Director of Credit Agricole; along with senior officials from both entities.
Credit Agricole will provide payment facilities to City Edge customers through three mortgage plans. The first includes providing mortgage finance with a repayment period extended over 20 years and a minimum down payment of 20% within the framework of the CBE initiative.
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The second plan is to provide various payment periods for units that are not included in the initiative, up to 20 years according to the real estate finance law. While, the third plan offers payment periods of 20 years to previously contracted clients who wish to sell units to others, according to the re-sale system.
“By signing this protocol today, we seek to provide an opportunity for the largest amount of customers to benefit from the CBE’s mortgage initiative. The real estate sector is of great importance due to its association with around 100 industries, directly and indirectly. And given the role the sector plays in the growth of the national economy, the sector’s progression has a commensurate positive effect on all other sectors, and contributes to their growth.” Dr. Mohamed El-Mikawi, Chief Executive Officer of City Edge Developments stated.
El-Mikawi added, “The real estate sector is experiencing a real demand and purchasing desire, with units available for multiple housing segments. Hence, this cooperation demonstrates a link between the purchasing power and the units’ prices in particular. City Edge is aiming to benefit from all the initiatives that are put forward regarding real estate financing, This comes in line with the state’s urban development plan within Egypt’s Vision 2030, which aims to increase the urban area and provide housing units that meet all the needs of Egyptians.”
Mr. Walie Lotfy, Deputy Managing Director of Credit Agricole Bank, said: “We believe in the importance of providing financial solutions that meet the needs of customers, and real estate has become one of the most key investment mechanisms. As a result, the bank has cooperated with City Edge, one of the leading corporates operating in the real estate market.
Lotfy point out that the protocol reflects the bank’s eagerness to activate the CBE initiative to provide real estate financing on suitable terms to benefit a larger amount of customers, in line with the bank’s strategy. The bank’s portfolio has recorded a significant increase in real estate loans since the beginning of the year. The bank’s mortgage finance products are available through its branches as well as the Egyptian Real Estate Finance Company, which he owns, and considered one of the key players in the field of real estate finance in Egypt.
Lotfy added that mortgage funding is considered investment financing as the CBE’s initiative helped in enabling citizens to own a suitable housing unit and pay its value on a long period, up to 20 years at a low interest rate, which comes in line with the presidential initiative for citizens to obtain a proper and suitable housing.