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Saturday, 07 December 2019

FRA allows credit rating companies to start activities in Egypt

Doaa A.Moneim , Monday 2 Sep 2019
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Views: 1620

The Egyptian Financial Regulatory Authority (FRA) approved on Sunday to allow SME credit rating companies to receive licenses to carry out activities in the Egyptian market, the FRA said in a statement.

This action aims to provide small and medium sized enterprises (SMEs) with the required funds for their projects through issuing various kinds of bonds including medium term bonds for capital assets financing and short term bonds for the working capital financing, according to head of the FRA Mohamed Omran.

Omran added that the new amendments to the capital market law and its executive regulation have facilitated procedures in this regard.

“The FRA stipulates that the companies which desire to issue short term bonds have to get a credit rating certificate from accredited credit rating companies, with no less than a BBB- rating,” Omran said.

Law no.176 for 2018 has been issued to control financial leasing and factoring activities in the Egyptian market to offer more financial tools, in addition, movables security index has been activated as of March to enable SMEs to get funds on guarantee of their movable assets through an electronic system.

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