Dr. Omran: Speedy justice enhances non-banking financial activities
Dr. Omran: Monthly reports indicate positive signs of recovery from the negative impacts of the Coronavirus
Dr. Mohammed Omran – FRA’s Chairman and his deputy Judge Khaled Al-Nashar visited Judge Abdullah Omar – President of the Supreme Judicial Council and President of the Court of Cassation to present aspects of joint cooperation during the coming period, within the framework of the digital transformation process for all economic activities and transactions. That is besides ensuring the compatibility of new applications and technological tools with the legislations regulating the non-banking financial sector, such as electronic records, electronic filing, electronic signature, electronic document , electronic payment and electronic proceedings with the relevant authorities. Also, they stressed on the urgent need to rely on technological applications and tools to enhance the economic activity.
During the meeting, Judge Abdullah Omar expresses his happiness to cooperate with FRA. This protocol will include several meetings and workshops specialized in non-banking financial sector subjected to FRA’s supervision and control. These workshops will discuss technical considerations that will create economic backgrounds for judges upon settling disputes related to non-banking financial activities. Also, it will maximize the benefit from highly experienced judges. In addition, the workshops will include a review of all developments that occurred in legislations governing non-banking financial activities.
The President of the Supreme Judicial Council asserted that consumers’ trust in the non-banking financial services and the speedy justice will prepare the investment climate in Egypt to be more attractive. He added that during the past two years many legislations were issued and thus exchanging experience were needed to build economic backgrounds related to them.
Dr. Omran emphasized that the unprecedented revolution of legislations in the non-banking financial sector included the issuance of the largest amendments to the current Capital Market Law No. 95 of 1992 that was issued more than 26 years ago , and the subsequent amendments to the Executive Regulations of the law, the latest of which was the issuance of ministerial decree No. (1760) of 2020 at the beginning of this month by amending the provisions related to real estate investment funds and acquisition offers. Besides, introducing new forms of sukuk and the issuance of financial leasing and factoring law that contributes to enhancing financial inclusion. In addition to the Consumer Finance Law, which aims to increase the purchasing power of citizens, as well as the Central Depository and Registry Law allowing the establishment of settlement and clearing companies specialized in government securities and others for future contracts, and finally the amendments being issued to the law governing microfinance activity to include financing small and medium enterprises besides micro-finance.
FRA’s Chairman praised the remarkable interest on the part of the President of the Supreme Judicial Council in simplifying litigation procedures and expanding the scope of work of Economic Courts to ensure the prompt settlement of disputes. Dr. Omran added that such steps had a positive reflection towards raising the classification of Egypt in the Doing Business Report issued by the World Bank. Also, he noted that the non-banking financial witnessed positive indicators towards recovery from the effects of the Corona virus, according to what was monitored by FRA’s monthly performance report – July 2020. The Report stated that the primary market (issuances ) witnessed 290 new issuances of incorporation shares and capital increase shares by a value of more than 7.6 billion pounds. On the other hand, the secondary market witnessed a total trading value amounted to 40 billion pounds during July 2020.
According to Omran, FRA’s monthly performance report ( July 2020) showed that the total value of insurance premiums amounted to 3.3 billion pounds, achieving a growth of 2.6% compared to July 2019. While, the total value of compensations increased to reach 1.8 billion pounds in July 2020 with a growth rate of 14.3% compared to the same last year. On the other hand, private insurance funds’ investments increased during July 2020 at a rate of 3% compared to the same month last year.
Also, the Report showed that the total value of the mortgage finance granted by companies during July 2020 reached about 231.8 million pounds, with a growth rate of 5.1% compared to the same month last year . While, the total value of the real estate finance balances amounted to 6664.2 million pounds during July 2020 compared to 5534.7 million EGP in July 2019.