For World Bank Group liquidity facility interventions to be successful, a number of conditions need to be in place, such as a stable macroeconomic environment, active institutional investors willing to purchase non-government bonds, and a small but liquid bond market. While World Bank support for the Egypt Mortgage Refinance Company (EMRC) was well-designed with reasonable causal links, these conditions were not in place for a mortgage bond market to develop.
The major objective of EMRC was to provide long-term funding to lenders using bond issuance from a centralized issuer, with the result being the development of domestic capital markets. However, EMRC did not find success because the bond market was relatively undeveloped, especially for non-government debt, and the World Bank loan to establish EMRC ended up being used for mortgage lending instead.
Source:
World Bank Group. (2016) World Bank Group Support to Housing Finance. International Bank for Reconstruction and Development / The World Bank.
Link: https://ieg.worldbankgroup.org/evaluations/world-bank-group-support-housing-finance