Minister of Investment and International Cooperation: We are working to achieve financial inclusion… The agreement will improve Egypt’s ranking in the Doing Business report over the coming years
Dr. Mohammed Omran: Movable Guarantees Registry facilitates SME funding … grants projects the chance to obtain financing by guaranteeing machinery and equipment, patents, and engineering designs
On Sunday 10 September 2017, Dr. Mohammed Omran, EFSA’s Acting Chairman and Mr. Mohamed Ahmed Kafafi – Executive Chairman of The Egyptian Credit Bureau signed a protocol on establishing and managing Movable Guarantees Registry. Representatives of the International Finance Corporation (IFC) and leaders from the Ministry of Investment and International Cooperation and EFSA attended the event.
Dr. Sahar Nasr stressed that the Ministry supports SME funding and obtaining equal opportunities to contribute to the Egyptian economy and this is one of the ministry’s priorities. She added that the Ministry is working towards deepening and achieving financial inclusion.
The Minister said that this agreement comes as part of Egypt’s efforts to improve its ranking in the Doing Business report over the coming years.
The Minister congratulated Dr. Mohammed Omran on being appointed as EFSA’s Acting Chairman. She pointed out that the Ministry is working on achieving legislative reforms to improve investment environment, thus contributing to economic growth, allowing all sectors of society to gain its benefits that is besides providing employment opportunities for young people.
The Minister said the Ministry is supporting EFSA in developing a strategy to achieve financial inclusion.
Dr. Mohammed Omran confirmed that establishing Movable Guarantees registry is an important step towards achieving financial inclusion. He pointed out that the registry will facilitate SME funding after registering movable guarantees in the registry. He added that this will activate investment, push forward the wheel of development and increase operating and growth rates. In addition this is will encourage financing institutions to expand financing for these projects, which had difficulties in borrowing before the establishment of the registry due to the lack of loan guarantees .
EFSA’s Chairman noted that the movable guarantees registry will allow the projects to obtain financing by guaranteeing machinery, equipment and inventory, in addition to patents, models and engineering designs.
Dr. Mohammed Omran stressed that the Authority has ensured that the law and its Executive Regulations include the preparation of an electronic registry for publicizing movable guarantees. He added that EFSA was keen to establish the registry in accordance with the best international practices and applications including “ legal rights index” that is stated in Doing Business Report , adding that the Register will improve Egypt’s ranking in the Doing Business reports.
Mr. Mohammed Ahmed Kafafi – Executive Chairman of The Egyptian Credit Bureau presented the measures taken by the company to submit public bidding announced by EFSA for the establishment and management of the registry, stressing that the company will work to complete the establishment of the registry within six months.
He pointed out that the most important reasons for awarding the bid was that the company has the technological infrastructure and the network linked to each of the banks , mortgage companies , financial leasing companies and donors in addition to the credit data of small and medium-sized companies and NGOs authorized to grant loans.