Aggregated News From Investment Management Regulators

Movable Guarantees Registry will enter into force within 6 months


Please complete the required fields.

• Abdel-Moaty: registration will allow new segments of dealers to enter the circle of financial inclusion 
• The Registry will have a positive impact on dealers in non-banking financial activities and also will improve Egypt’s ranking in the World Bank’s Doing Business Report

Counselor/ Reda Abdel-Moaty, EFSA’s vice Chairman revealed that the Authority has assigned the establishment and management of Movable Guarantees Registry for the Egyptian Credit Bureau “I-Score”. He added that contract’s procedures are being completed with the company to start the actual operation within a maximum period of six months from the date of the contract.

This is a step towards achieving financial inclusion in the economy and drying up the obstacles that occurred in granting financing to ordinary citizens by providing financing guarantees, organizing the collateral of these movable guarantees and facilitating publicity procedures. That is in addition to facilitating access to information about guarantees registered in the Movable Guarantees Registry through the database published on the registry’s website.

On the other hand, the existence of movable guarantees registry will activate financial leasing through using movable assets that are registered in the register as collateral for obtaining financing. This will increase the chances of small and micro enterprises in obtaining the necessary financing to carry out their activity while minimizing the risks related to it. In addition it will reduce credit costs, enhance confidence in the creditors to ensure the fulfillment of their rights and activate investment movement and accelerating the development. Also, it will open the door wide for small companies to enter the Nile Stock Exchange as a new financing platform that companies will depend on in financing its future expansions.

Moreover, this will increase access to financing for Micro Enterprises – once started work – through the system of moveable guarantees, especially as it is a good opportunity for clients of this sector to provide equipment, machines, and goods, not currently exploited, this is in addition to livestock in order to gain the confidence of accountants in NGOs and microcredit companies.

Counselor/Abd Elmoaty pointed out that one of the most important advantages of applying movable guarantees registry is improving Egypt’s ranking in the World Bank’s Doing Business report and allowing local banks to obtain credit lines from banks and international financial institutions to re-lend small and micro enterprises, in addition to reducing the time and effort required for the operations of the month.  He added that using technology in publicizing rights and reducing publicizing fees will contribute significantly to reducing the cost and ease of financing.

The Authority has already announced a limited – unprecedented – tender for the establishment of movable guarantees registry by companies specialized in this field since April 2017 and ended in mid-August. Two companies submitted a project to establish and manage the registry from the 6 companies that received the terms of conditions. The tender requires the design and establishment of an electronic registry to register movable guarantees that is besides the management and operation of movable guarantees registry and its website, in accordance with the provisions of movable guarantees law no. 115 of 2015 and its executive regulations.

He stressed that the Egyptian Credit Bureau “I-Score” will operate according to an electronic system that records all the data of citizens wishing to obtain financing. The Registry will include the kind of movable guarantees to prove its ownership and will prohibit using it again through the user name and personal password.  He added that EFSA set a fee of 15 pounds per thousand pounds of the guarantee’s value with a minimum of 50 LE and up to 500 LE as maximum fees set for registration and for any amendment / addition / cancellation of registration or assignment.

It is worth mentioning that Movable Guarantees Law no. 115 of 2015 and its executive regulations are aimed at overcoming the legal difficulties facing small and micro enterprises in obtaining financing using movable assets as collateral for obtaining financing, as the general provisions in the mortgage require the transfer of movable property from the debtor to the creditor or to another person accepted by the creditor.

Source link

Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

Recent Articles

SEC Charges Man for Defrauding Investors out of Millions of Dollars by Posing as Hedge Fund Billionaire

Defendant presented himself as a special forces veteran and Harvard grad to gain investor trust Washington D.C., Sept.

SEC Monitoring Impact of Hurricanes Ian and Fiona on Capital Markets

Washington D.C., Sept. 29, 2022 — SEC Chair Gary Gensler has directed the staff to carefully monitor developments as a result of Hurricanes Ian and Fiona.


We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Get the latest from Regulatory.News in your inbox!