Islam Azzam, the Vice-President of the Financial Regulatory Authority (FRA), told Daily News Egypt that the FRA is currently working on providing new financing products in the Egyptian market to keep pace with global developments.
The suggested products are sustainable green and Islamic microfinance instruments, along with a special product to serve the agricultural sector.
Azzam explained that the authority’s goal in providing new private green financing products is to motivate low-income workers in various economic sectors to use environmentally friendly and more sustainable practices as well as to integrate informal economy projects into the formal sector.
He revealed that the authority is currently studying two green bond issues and is submitting two draft information notes; the FRA expects them to be completed during 2022, suggesting that new requests during the year may bring the total number of issues to four.
Azzam pointed out that legislative amendments are being implemented to the executive regulations of the capital market law to make blue and brown bonds available, expecting the emergence of at least one issue this year, especially since one of the institutions has shown interest.
On another note, Azzam revealed that the authority is currently reviewing applications for about five companies seeking incorporation, including one service provider.
He added that the authority is currently working on a legal amendment to allow consumer finance companies to use movable collateral registry declarations, as well as allowing bank accounts to be entered into the consumer finance client’s escrow, to allow entry to the collateral without checks and securities.
He added that it gives the option of setting priorities if the movable is secured by more than one creditor and placing a lien on the holders of the security rights declared in the register precedes all privileges rights, including the sovereign authorities and taxes.