Gov’t approve amendments on microfinance
LEGISLATION WATCH- Gov’t sets capital requirements for non-bank SME funders: The Madbouly Cabinet approved yesterday draft amendments to the 2014 Microfinance Law that set up new capital requirements for all non-banking finance institutions looking to lend money to SMEs, according to a cabinet statement. Companies looking to finance SMEs must have issued and paid-up capital of EGP 20 mn, while companies looking to finance micro enterprises must have capital of EGP 5 mn. The cabinet also placed the Financial Regulatory Authority in charge of these companies, and tasked it to set up regulations in coordination with the SMEs Development Authority. Similar regulations for the banking sector were laid out last week by the CBE. Other decisions taken by the cabinet include:
- Approving a USD 3.5 mn grant from USAID to help fund small farmers and setting up commercial avenues for them to market their crops.
- Approving a USD 550k grant from the African Development Bank aimed for supporting entrepreneurship initiatives.