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Eng.Bashir Mostafa, CEO of First Group Development

Eng.Bashir Mostafa, CEO of First Group Development

Eng. Bashir Mostafa, CEO of First Group Development Company and a member of the Construction and Building Committee of the Egyptian Businessmen Association, confirmed that the Central Bank’s decision to make a number of amendments to the terms and controls of bank financing for real estate development companies and the financing of land installments allocated to these companies is a very important and positive decision that supports the growth of the real estate market, restores its vitality and encourages companies to be committed and disciplined in order to meet the conditions of the Central Bank to benefit from this decision.

In a comment on this decision, he noted that the Central Bank’s decision reflects the extent of the political leadership’s interest in the real estate sector, as it is one of the most important economic sectors that contribute to the country’s sustainable development plan, which needs more support, pointing out that the requirements set by the Central Bank will provide a number of mechanisms that It regulates and controls the real estate market because the Central Bank stipulated that these companies have a precedent of business, credibility and commitment in the dates of delivery of their projects, while ensuring their financial solvency, their dealings with banks, and other matters and procedures that support only serious companies in the Egyptian market.

He added that these amendments came at the right time, especially with the high prices of land now and the conditions for paying installments – up to three years – of which it puts a very large financial burden on the police, which makes it unable to develop the land as quickly as required to complete the project and start at the end of this, in addition to the poor solvency of customers now, companies resort to attracting them by providing payment facilities up to the payment of advances starting from 0% down payment and up to 10% for installments that may reach more than 10 years.
Therefore with these weak advances and the disbursement of sales commissions and the advertising cost of the project A large number of companies have lost their ability to provide funds to complete the project, and therefore this decision will be a lifeline for real estate entities that have suffered during the past periods from a shortage of liquidity, especially with the continuation of the Corona pandemic for the second year in a row.