Dr. Mohammed Omran – FRA’s Chairman held a meeting with Heads of the Egyptian Credit Bureau (I-SCORE) yesterday to follow up the remaining steps to put the electronic movable guarantees registry into operation after the company has finished the design of the registry’s electronic system and testing it to be ready on time.
During the meeting, Mr. Mohammed Kafafy – Chairman of I-SCORE reviewed the efforts of his company in the field of training human resources in banks and other financing entities on how to publicize in the movable guarantees registry, which is the first electronic registry in Egypt through which banks, financing entities and others from the owners of the rights on the movables to publicize the movables in an electronic manner, granting them the right of privilege and priority to deposit their rights on these movables.
Dr. Mohammed Omran also stressed on the importance of holding intensifying awareness campaigns on movable guarantees registry during the coming period and highlighting the advantages of publicizing in the said registry. He added that training programs shall be held for various entities, donors and bodies which have rights guaranteed by movables such as administrative bodies. These training programs shall present how to use the register to preserve rights and priority of these entities to take the movable assets collateral.
Dr. Omran added that the Authority has already announced a limited – unprecedented – tender for the establishment and operation of Movable Guarantees Registry by specialized companies in this field in April 2017 and ended in mid-August last year, where two companies submitted a project to establish and manage the registry from 6 companies received the bids.
The tender included the design and establishment of an electronic registry to record movables guarantees rights, besides the management and operation of the electronic registry and its website, in accordance with the provisions of Movable Guarantees Law no. 115 of 2015. The said Law aimed at increasing the volume of financing and credit in the national economy through the use of movable assets like, machinery, goods, metals and other movables that are registered in the Registry as collateral for obtaining financing and preserving the rights of the financing entities from the date of registration in the Registry. This will reduce the risk of financing to these entities, thereby reducing the costs of credit. It also works to instill confidence in the donors as these movables secure their rights. In addition, this will encourage lenders to offer the necessary financing especially for small and micro enterprises that may have difficulty in obtaining financing for the reluctance of credit granting institutions to provide financing for many of them because of the unavailability of real estate assets which constitute an important legal guarantee to them despite the existence of some movables that can be used as collateral for obtaining financing. Also, it will improve Egypt’s ranking in the Doing Business Report issued by the World Bank.
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