Originally Posted by Jeremy Sturgess

As I understand on Apr 1 the Central Bank of Egypt changed their rules on what the banks they regulate can do in the mortgage field. I understand this rule change only forbid them to provide construction draw down loans for off plan property. It didnt (so far as Im aware ) ban them from issuing mortgages to foreign citizens as you seem to imply above.

HSBC is still offering loans to foreigners (Im still confused about whether this is just to foreigners with residency status in Egypt or all foreigners - I think the former) but on completed property only. The max term is 10 yrs and interest rate is 2% over 1 year dollar liboe for a USD loan. Maximun loan to value is 65%. Interest rate resets annually in line with 1 yr libor.


The mortgage companies are not bound by this CBE rule change as they are not regulated by CBE. My investigations however indicate that foreigners are still restricted to 10 years term and 65% LTV in all the term sheets ive seen. Why dont you post a term sheet for foreigners from Tamweel or Amlak-my belief is you will find that the terms you are referring to apply only to Egyptian resident nationals and not johnny foreigner.