PHOTO
Egyptian pound banknotes sit on a table on March 6, 2024 in Cairo, after Egypt's central bank announced it will allow the exchange rate to be set by the market. Egypt's central bank announced on March 6 it will allow the exchange rate to be set by the market, causing the pound to lose more than a third of its value within minutes. Shortly after 12:00 pm (1000 GMT), the Egyptian pound was trading at a record high of 49.15 pounds to the US dollar, after more than a year of a stabilised official exchange rate of around 30.9. (Photo by Khaled DESOUKI / AFP)
Egypt - The Financial Regulatory Authority (FRA) has issued a circular outlining new controls for the transfer of credit portfolios from non-banking financing entities to other licensed financing entities, banks, securitization companies, or investment funds, as per a statement.
Circular No. 6 of 2024 establishes the requirements for these transfers, aiming to ensure the proper supervision of non-banking financial markets and safeguard the interests of market participants.
According to the circular, non-banking financing entities seeking to transfer credit portfolios must first obtain the FRA’s approval.
The request must also include the approval of the relevant authorities overseeing the transfer.
The rule applies to any licensed entity engaged in non-banking financing activities, such as real estate financing, financial leasing, factoring, and consumer financing, as well as institutions supporting medium, small, and micro-enterprises.
The new regulations restrict the use of guarantees in consumer financing contracts to a single transfer, preventing their use in multiple transactions.
Additionally, the transferred portfolios must consist of credit rights from clients who demonstrate regular payments, and an electronic file containing relevant data must be submitted to the FRA.
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