The Financial Regulatory Authority

Board of Directors Decision No. 158 of 2014

Dated 3/12/2014

Regarding Microfinance Activities and Their Limits

The Board of Directors of the Financial Regulatory Authority:

Having reviewed the Constitution:

And on the Presidential Decision by Law No. 141 of 2014 regulating microfinance activities:

And on Law No. 10 of 2009 regulating supervision over non-Egyptian financial markets and instruments:

And on the approval of the Authority's Board of Directors in its meeting No. (71) held on 3/12/2014:

Decided:

(Article One)

Companies, associations, or non-governmental institutions licensed by the Authority to conduct microfinance activities are required to comply with the provisions of Law No. 141 of 2014, whereby their financing must be restricted to economic purposes in income-generating productive, service, or commercial sectors, and they must consider the participation of borrowers in the effort or a portion of the required financing for the project or activity, commensurate with the nature of such project or activity.

In all cases, the aforementioned entities are prohibited from providing financing for consumer purposes. Furthermore, the financing value for a single borrower must not exceed one hundred thousand Egyptian pounds, and compliance with the rules and regulations governing the activity must be maintained.

issued by the Authority's Board of Directors.

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(Article Two)

Companies, associations, or non-governmental institutions may provide financing in all income-generating economic sectors and activities, including in particular the following:

1 - Agricultural Sectors and Related Activities: Including agricultural production or manufacturing, animal and poultry breeding, aquaculture, fishing, and other activities or projects in agricultural sectors.

2 - Productive, Industrial, and Craft Sectors: Including all production and manufacturing fields for consumer goods, furniture, food, leather, paper, wood, metal, plastic, glass, office supplies, devices, furniture, equipment, all types of handicrafts, waste recycling, and other activities or projects in productive, industrial, and craft sectors.

3 - Service Sectors: Including contracting, finishing, transportation, packaging, storage, maintenance, repair, restaurants, food, sports facilities, entertainment and leisure, computer services, information and communication systems, health and medical services, educational and training services, tourism and travel services, photography, artistic works, advertising, printing, and binding, professional services, cleaning services, and laundry, and other activities or projects in service sectors.

4 - Commercial Sectors: Including all activities or projects in wholesale and retail trade, customs clearance, brokerage, and employment activities.

(Article Three)

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