By Arab Desk
The decision included granting companies that have been incorporated, have applied for incorporation or obtained initial approval of incorporation to carry on the above-mentioned activities, a period of time to increase their issued and paid-up capital within a period not exceeding three months from from the date of obtaining a license to practice the activity.
The decision also provided that the Authority may extend the aforementioned period for other periods not exceeding one year, in the light of the serious justifications provided by the company and accepted by the Authority, with regard to the companies who have not engaged in any of the above activities. non-bank financing activities.
For his part, the Chairman of the Board of Directors of the General Financial Supervisory Authority, Muhammad Farid, explained that the decision to increase the capital of companies that engage in non-banking financing activities aims to improve the levels of financial stability of companies operating in the leasing and factoring business, microfinance companies, financing of small and medium projects, and corporate consumer finance, in order to ensure operational efficiency to enable companies to fulfill their obligations and make them better able to face and bear any future financial risks.
The President of the Authority added that the development of capacities and the increase in the financial efficiency of companies make it possible to develop financial solutions and to create innovative financing mechanisms in line with the needs of customers of all groups, whether in terms of income or age groups and financing needs. according to their various activities.
He also stressed that the Authority is keen to take all necessary measures to develop and develop the markets in the light of the discussions and to activate the partnership with all the parties concerned, explaining that several discussions have taken place between the work teams technical authorities of the Authority and all the professional federations and associations representing all financing activities, in order to obtain a better understanding of the needs of the markets, and the issuance of the necessary regulatory modifications and controls, with the aim of achieve greater efficiency in the activities of finance companies and strengthen market stability and transaction security.
According to the decisions of the Authority, the capital of the aforementioned finance companies, issued and paid up, must not be less than seventy-five million pounds in cash, or its equivalent in foreign currencies at the exchange rate issued by the Central Bank from Egypt.
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Source: Egypt gives non-bank financial companies time to raise capital
Category: News, World, Egypt, Finance, financial companies, financial control, financial control authority
