Cairo – Mubasher: The volume of Egypt’s consumer financing amounts to as much as EGP 70 billion, chairman of the Financial Regulatory Authority (FRA) Mohamed Omran said.
This activity has been disorganised for a long time, therefore the authority is in the process of issuing decisions and regulations to organise it in preparation for unveiling a law regulating supervision procedures and the activity of financing installment purchases in Egypt, Omran added.
During the opening of the third conference on financial leasing, he indicated that the North African nation aims to expand the economy and set the regulations and laws that organise all economic activities within the country’s formal economy.
The non-banking sector activities stood at nearly EGP 1 trillion in June 2017, accounting for 16% of the total financial sector, which exceeds more than EGP 1 trillion, Omran highlighted.
He noted that financial leasing in Egypt has doubled to around EGP 28 billion year-to-date from EGP 3 billion and it targets reaching EGP 35 billion by the end of 2018 and EGP 80 billion by 2022.
Factoring and leasing were merged into a single law to widen the base of this activity that seeks to create and facilitate financing projects, he pointed out, adding that small- and medium-sized financing companies were allowed to add microfinance leasing activity.
