Regulatory Alerts2018-01-01
Capital Market Authority Board Decision No. 80 of 2018 Regarding the Regulation of Financing Leasing Contracts for Targeted Companies by Venture Capital Companies
The Capital Market Authority issued Decision No. 80 of 2018 to regulate the financing of leasing contracts by venture capital companies for targeted enterprises. The decision permits venture capital firms to fund leasing companies through tripartite agreements where the venture capital firm assumes the primary repayment obligation from the lessee. This framework limits the leasing company's role to collecting installments and acting as a collateral agent, thereby eliminating its recourse against the venture capital firm.
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