Egyptian financial regulator, financial firms discuss increasing growth in financing activities
Eslam Azzam, Vice Chairman of the Financial Regulatory Authority (FRA), met with representatives of financial companies to discuss their proposals for developing a range of financial activities.
These include the real estate finance, leasing and factoring, consumer credit markets and increasing their growth rates, in addition to overcoming obstacles to the expansion of these markets. .
The meeting took place in the presence of members of the advisory committees and representatives of the federations for each activity.
The Egyptian Leasing Union called on FRA to communicate with relevant parties in order to reduce the time required to issue the approvals required for the implementation of agreed projects. These will be financed by leasing companies.
He understands the speed that will facilitate the process of landscaping the land and the projects that will be established there.
Azzam noted that FRA has prepared a guide on all applicable controls and decisions related to leasing and factoring activities.
The meeting reviewed the demands made by real estate finance companies and put forward by the Egyptian Union for Real Estate Finance. This, in turn, was intended to facilitate the access of mortgage finance companies to low-cost sources of finance.
They also expressed their desire to start releasing a new version of the Egyptian Property Valuation Standards and complement the rest of the applications to keep pace with market variables.
Representatives of consumer finance companies and service providers called for a reduction in the cost of the customer’s credit application service.
Azzam expressed interest in the cost of conducting credit investigations and promised that the authority would contact the service provider to discuss the possibility of meeting the cost of activities similar to sister activities.
He also stressed that the authority would communicate with the relevant authorities of the Ministry of Finance to clarify the dependence of consumer credit companies authorized to carry out the activity of FRA. This would be followed by an exemption from value added tax for consumer credit companies.
A total of 31 consumer credit companies have been licensed by the authority so far, despite recent activity. The statutes of the Egyptian Consumer Finance Federation have been prepared and will be presented at the next meeting of the FRA Board of Directors.
It aims to speed up the legal procedures for the formation of a trade union, which will have an important role in the growth of such activity.
Regarding the factoring activity, companies demanded the constitution of investment funds to finance non-bank financial services companies, and the provision of financing at a favorable interest rate through financing initiatives and support for projects and various export sectors.
The factoring companies participating in the meeting welcomed the provision of the service of deduction of deferred financial rights of securities brokerage companies resulting from the exercise of the activity of buying securities on margin for those who do so. make the request.
This is in line with Decision No 25 of 2021, taken by the FRA Board of Directors released earlier this month, with the aim of boosting the trading of securities on the Egyptian Stock Exchange (EGX).