Cairo – Mubasher: The Central Bank of Egypt (CBE) has raised the cap on banks’ mortgage loan portfolio to 10% of the total loan portfolio from a previous percentage of 5%.

The new rule will not apply to the Egyptian Arab Land Bank (EALB) as well as Housing and Development Bank (HDB), according to a recent circular released by the CBE.

This move is part of the CBE’s initiative for the allocation of EGP 50 billion funding for middle income housing.

Previously, source told Mubasher that the CBE is expected to activate its middle income mortgage initiative by the beginning of next March.

The funding will be offered at a declining interest rate of 10%, with repayment terms of up to 20 years.