Cairo – Mubasher: The law amendments in the Capital Markets Act, which have been recently approved by the Egyptian parliament, will positively impact banks and reinforce the financial markets in the North African nation, according to a recent report by Moody's Investors Service.
The latest amendments will help to facilitate sukuk issuance and bolster investors’ ability to hedge against risks, the report highlighted.
This in return will make the Arab world's most populous country more “appealing investment destination” to foreign investors, the report added.
The amendments will also raise banks’ income from their debt capital markets business while also providing funding options, according to the report.
“The amendments also facilitate sukuk issuance, set higher penalties for violations of the law and set up a federation for non-banking financial companies similar to the Federation of Egyptian Banks,” the report continued.
