• Dr. Omran: An amendment to the Executive Regulations of Movable Guarantees Law allows natural persons to provide funding for productive and service projects backed with movable asset
• Dr. Omran: 43,309 declarations at a value equivalent to 647.1 billion pounds by the end of March 2020.
Dr. Mohammed Omran – FRA’s Chairman announced that the new amendment allows natural persons to provide funding for productive and service projects backed with movable asset. The first declaration was registered at the Egyptian Collateral Registry at an amount of four hundred thousand pounds, according to the amendment made to some provisions of the Executive Regulations of the Movable Guarantees pursuant to Ministerial Decree No. (908) 2020 issued in mid-April.
FRA’s Chairman said that the said amendment allowed natural persons to provide funding for productive and service projects backed with the rights secured by movables in the possession of the debtor and declaring them in the electronic Collateral Registry which operates 24 hours a day throughout the year.
FRA’s Chairman welcomed the issuance of the Ministerial Decree valuing the effect of that amendment on further facilitating the availability of providing funding for productive and service projects, especially small and medium-sized enterprises, which can only provide movable assets as collaterals to obtain funding. In this respect, the movable asset (collateral) shall be in the possession of the small and medium-sized enterprises and thus be used in its production and service activities.
Dr. Omran explained that the previous period has proven the attractiveness and effectiveness of the electronic Collateral Registry. He added that movable collaterals such as equipment, machines and moral assets are being used as mechanisms for obtaining funding for projects. He noted that the 11th of March 2018 (the beginning of work in the electronic registry ) was a milestone and a qualitative shift in integrating the informal economy into the national economy. Such step improved the degree of liquidity and made movable assets available to obtain funding through the declaration of collaterals electronically. So, in this respect funding agencies shall grant funding faster and in accessible procedures.
Declarations of collaterals in the electronic Registry also allows creditors to have priority over all other creditors in collecting their debts from the moment the rights are declared electronically.
Dr Omran indicated that the volume of declarations until the end of March 2020 amounted to 43,309 declarations at a value equivalent to 647.1 billion pounds, including declarations during last March with a value of 5.3 billion pounds, which indicated that many productive and service projects, especially medium and small projects obtained funding for its activities.