Contacts
In Cairo:
Eman Wahby
202-2574-1670
ewahby@worldbank.orgÂ
In Washington:
Najat YamouriÂ
202-458-1340
nyamouri@worldbank.org WASHINGTON, September 24, 2009 - The World Bank’s Board of Executive Directors today approved a loan in the amount of $300 million to support the Affordable Mortgage Finance Program.
Providing affordable housing for low and middle-income households is a key priority on the Government of Egypt’s agenda. A significant number of reforms to promote mortgage and housing finance has been undertaken by the Government of Egypt.
The Affordable Mortgage Finance Program will gradually replace the supply-side subsidies that had been commonly used and move towards a more inclusive, transparent and efficient demand-side subsidy program for low and middle-income households.
The Program is one of the key outcomes of the strong partnership established between the Ministry of Investment, and the Ministry of Housing, Utilities and Urban Development, and the World Bank. Implementation of this operation will be led by the Guarantee and Subsidy Fund (GSF) under the Ministry of Investment.
“ We are pleased to support the ongoing development of the mortgage market and the creation of a more efficient housing finance market that targets low and middle income groups," said Emmanuel Mbi, Country Director for Egypt , Yemen and Djibouti .
" This support is in line with the Bank’s Country Assistance Strategy ( CAS ) and addresses two key strategic objectives of the CAS , namely: facilitating private sector development through improving financial sector competitiveness and efficiency; and promoting equity," he added.
The Program has three main components: (i) Strengthening the legal, regulatory and institutional framework for the Mortgage Finance Subsidies Program; (ii) Developing an effective and efficient mortgage finance subsidy mechanism; and, (iii) Improving the institutional framework to enhance transparency and targeting of housing subsidies.
" The Development Policy Loan will support the Affordable Mortgage Finance Program, which will be the main program catering low and middle income groups, which are especially vulnerable during the current global economic crisis," said Sahar Nasr, the World Bank Task Team Leader.
" Therefore, it will contribute to increase the housing options for low and middle income households, which will have a significant social and economic impact, improving the living standards and the well-being of Egyptian citizens," she further added .
Approximately 75 percent of newly formed households cannot afford to acquire a formal sector house without a subsidy and have to rent or own in the informal sector. Current supply side subsidies targeted to this income group and channeled through developers are not always efficient, transparent, or equitable. The new Program will ensure efficient targeting and that only those that deserve housing subsidies have access to them.
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For more information, please visit www.worldbank.org/egypt |
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