Aggregated News From Investment Management Regulators

Mortgage finance and Factoring activities witnessed great growth in the first two months of 2017

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• The value of financial leasing contracts was 3.5 billion EGP by the end of February
• The value of new mortgage finance granted by the companies was 421 million EGP witnessing a growth by 110%
• The value of factoring was 1.1 billion EGP, recording a growth by 84%in the first two months

Sherif Samy- EFSA’s Chairman announced that the value of financial leasing contracts was 3.5 billion pounds within the first two months of 2017 compared to the same amount last year last year. The number of financial leasing contracts was reduced from 378 to 318 contracts.
Real estate activity was on the top of the list recording 2.2 billion pounds by 65% of the total activity, then comes Truck Leasing and Financing with a value of 380 billion EGP by 11 % and in the third place, Contracts of heavy equipments recording 292 billion pounds by 8.4% from the total activity.
It is worth mentioning that number of financial leasing companies listed at EFSA is 224 companies compared to 220 in the same period last year. This period witnessed activities performed by19 financial leasing companies and it was same number last year.
Regarding factoring, the volume of Factored securities was1.1 billion pounds in within January and February. During the same period last year the volume of factoring was 588 million pounds with an increase by84%. Financing accounts of the seven licensed companies estimated by 3.8 billion pounds by the end of February 2017, representing an increase by 73% when compared to the same period last year.

 It is worth mentioning that factored securities are distributed as follows: 82% local factoring and18% export. By the end of February 2017 , the number of companies benefited from factoring was 254 compared to 234 last year.
Sherif Samy revealed that the value of   Mortgage Finance granted by the companies was 421 million EGP compared to 200 million pounds during the same period of 2016, representing an increase by 110%. The total amount of mortgage granted by the companies until the end of February 2017 was estimated by 3.2 billion pounds representing an increase by 22%. The Egyptian Mortgage Refinance Company (EMRC) held operations amounted to 39 million pounds.  

The percentage of Investors whose income is more than 3500 pounds per month is estimated by 96% of the total number of beneficiaries within this period. Meanwhile, the percentage of investors whose income is between 2500 to 3500 pounds per month was 5%. The category of residential units with space of 86 square meters is 89% of the total number of contracts. Whereas, the category of residential units with space of 66-86 square meters is 4 % of the total number of contracts compared to 7% for residential units with space of 66 square meters. It is worth mentioning that 91% of contracts were for residential purposes.
The portfolios purchased by clients from Real Estate Development Companies reached 75% of the total value of contracts within this period and the rest for contracts by clients who deal directly with mortgage finance companies.
The number of real estate appraisers who were listed at EFSA was 194 by the end of February 2017 compared to 188 by the end of February 2016.

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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