I know that borrowing in most countries is based upon the Interbank rate of the currency involved plus maybe 1.5 - 2%
As the Egyptian Interbank rate is so high - 12% - I can understand that loans in LE would command interest rates of 13.5 - 15%
However, I would have thought that loans in GBP or EUR are based on either LIBOR or EURIBOR plus a few percent.
As a result, I would have have that Egyptian mortgages in GBP should be just slightly above what one would pay for a mortgage at the moment in the UK.
|