Egyptian Liquidity Facility

completed

The project consists of an IFC investment in, and Technical Assistance (TA) Program to the Egyptian Mortgage Refinance Company (EMRC or the company), previously known as Egyptian Liquidity Facility (ELF) which has been established as part of the initiative of the Egyptian Government to develop a viable housing and housing finance sector in Egypt. EMRC represents the second prong of reform which is aimed at enabling and encouraging commercial banks and other financial institutions to lend for housing. In this context the government has encouraged the formation of specialized finance companies and has established the Mortgage Finance Authority (MFA) to promote and oversee the housing finance sector. One of most important initiatives of MFA has been to push for the establishment of EMRC as a refinancing vehicle for commercial banks and other financial institutions engaged in mortgage lending. It is envisioned that as the primary mortgage market deepens, and primary mortgage lenders (PMLs) will be able and willing to offload their originations that they will do so to EMRC thus creating the possibility of efficient securitization into the capital markets.