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Wednesday, 29 January 2020

Consumer Credit Act talks to be finalized in next two weeks, FRA says

LEGISLATION WATCH- The Consumer Credit Act will be introduced to the House of Representatives within the coming two weeks, Chairman of the Financial Regulatory Authority Mohamed Omran said yesterday, after the House Economic Committee signed off on the legislation. The local press is reporting that the committee introduced a new article listing the types of goods eligible to receive consumer finance. The legislation is now with the House General Committee, which will decide in a few days whether to introduce it to the general assembly.

Background: We reported yesterday that the House had given a preliminary nod to the Consumer Credit Act. Under the legislation, new consumer finance companies with at least EGP 10 mn in issued capital would be able to obtain a license from the FRA. Companies must also be at least 25% owned by a financial institution, and be founded by legal persons that hold at least 50% of the company.

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