2016-01-01
The Financial Regulatory Authority issued Decision No. (15) of 2016 to amend the regulatory framework for microfinance activities conducted by associations and civil society institutions. The amendment adds Article 25, which mandates that licensed entities must accept clients' requests for modified repayment on existing financing contracts. It authorizes these entities to deduct the financing cost for the modification month and impose an early settlement commission not exceeding 5% of the remaining outstanding balance.
Dated 28/2/2016
Regarding the Amendment of the Rules and Standards for Practicing the Microfinance Activity for Associations and Civil Society Institutions
Board of Directors of the Financial Regulatory Authority
Having reviewed the Law Regulating Supervision over Non-Banking Financial Markets and Instruments, issued by Law No. (10) of 2009;
and the Law No. (141) of 2014 Regulating the Microfinance Activity;
and the Presidential Decree No. (192) of 2009 Issuing the Statute of the Financial Regulatory Authority;
and the Decision of the Board of Directors of the Authority No. (31) of 2015 Regarding the Rules and Standards for Practicing the Microfinance Activity for Associations and Civil Society Institutions and its amendments;
and the approval of the Board of Trustees for Supervising the Microfinance Activity for Associations and Civil Society Institutions dated 11/2/2016;
and the approval of the Board of Directors of the Authority in its meeting held on 28/2/2016.
Decided
A new article numbered (25) titled "Modified Repayment" shall be added to the Decision of the Board of Directors of the Authority No. (31) of 2015 Regarding the Rules and Standards for Practicing the Microfinance Activity for Associations and Civil Society Institutions, with the following text:
"Associations and civil society institutions shall be obligated to accept their clients' requests for modified repayment.
The association or civil society institution shall be entitled to deduct the financing cost for the month in which the modified repayment was made, and may add an early settlement commission not exceeding 5% of the remaining amount due to be settled."
Associations and civil society institutions licensed to practice the microfinance activity shall be obligated to accept their clients' requests for modified repayment regarding existing financing contracts, in accordance with the controls stipulated in the preceding article.
This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors
Sherif Samy