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Monday, 28 January 2019

Egypt’s FRA to finalize Leasing and Factoring Act executive regs by end-March

REGULATION WATCH- FRA to finalize Leasing and Factoring Act regulations by end-March: The Financial Regulatory Authority (FRA) is set to finalize by the end of March the executive regulations for the Leasing and Factoring Act, sources familiar with the matter said. The authority will outline in the coming two months new rules for tax treatment, as well as an internal governance mechanism for leasing and factoring businesses. The FRA has recently set solvency standards for companies and a framework for them to appeal FRA decisions.

Background: The recently ratified 84-article legislation regulates leasing and factoring as non-banking financial tools. It introduces a fixed capital base and a borrowing threshold for players in the field, limits them to leasing and factoring upon establishment, adds clauses to regulate SME financing and mandates the country’s economic courts with resolving legal issues — among other things.

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