EG-MORTGAGE FINANCE

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The Egypt Mortgage Finance Project enables banks and non-bank lenders in the primary market to begin offering long-term market-based mortgage loans for residential housing. The Egyptian Company for Mortgage Refinancing (ECMR), legally incorporated as a joint stock company during project preparation with the assistance of the World Bank, will receive the proceeds of a World Bank local currency loan as a line of credit. The line of credit will support the initial, start-up phase of the ECMR's operations as a second-tier, wholesale, market-based liquidity facility focused on refinancing longer-term residential mortgage loans originated by lenders in the primary market. As it matures, the ECMR is expected to begin issuing bonds or other securities in the capital market to help fund i t s operations on a market sustainable basis.