Aggregated News From Investment Management Regulators

The First Month in 2017 Witnessed Great Increases in Financial Leasing, Factoring and Mortgage Finance


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• The value of financial leasing contracts was 1.7 billion EGP in January 2017 recording a growth by 68%
• The value of new mortgage finance granted by the companies was 275 million EGP witnessing an increase by195%
• The value of factoring was 479 billion EGP in January 2017 recording a growth by 93%

Sherif Samy- EFSA’s Chairman announced that Financial Leasing witnessed a growth by 68% within January. The value of contracts was 1.7 billion pounds this year compared to 984 million pounds in the same period last year. The number of financial leasing contracts was increased from 182 to 187 contracts.

Real estate activity was on the top of the list recording 1 billion pounds by 62% of the total activity, then comes Truck Leasing and Financing with a value of  259 million EGP by 16 % and in the third place, Contracts of heavy equipments recording 175  million pounds by 11% from the total activity.

It is worth mentioning that number of financial leasing companies listed at EFSA is 224 companies compared to 220 in the same period last year. This period witnessed activities performed by19 financial leasing companies compared to 17 companies in the same period last year.

Regarding factoring, the volume of Factored securities was 479 million pounds within January. During the same period last year,   the volume of factoring was 248 million pounds with an increase by 93%.Financing accounts of the seven licensed companies estimated by 4 billion pounds by the end of January 2017, representing an increase by 86%.

 It is worth mentioning that factored securities are distributed as follows: 82% local factoring and18% export. By the end of January 2017, the number of companies benefited from factoring was 248 compared to 233 last year.

Sherif Samy revealed that the value of   Mortgage Finance granted by the companies within January was 275 million EGP compared to 93 million pounds during the same period of 2016 with an increase by195%. The total amount of mortgage granted by the companies until the end of January 2017 was estimated by 3.2 billion pounds representing an increase by 19%. The Egyptian Mortgage Refinance Company (EMRC) held operations amounted to 39 million pounds.  

The percentage of Investors whose income is more than 3500 pounds per month is estimated by 95% of the total number of beneficiaries within this period. Meanwhile, the percentage of investors whose income is between 2500 to 3500 pounds per month was 5%. The category of residential units with space of 86 square meters is 90% of the total number of contracts. Whereas, the category of residential units with space of 66-86 square meters is 3 % of the total number of contracts compared to 6% for residential units with space of 66 square meters. It is worth mentioning that 98% of contracts were for residential purposes.

The portfolios purchased by clients from Real Estate Development Companies reached 100% of the total value of contracts within this period and the rest for contracts by clients who deal directly with mortgage finance companies.
The number of real estate appraisers who were listed at EFSA was 194 by the end of January 2017 compared to 188 by the end of January 2017.

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Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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