Board Resolution No. 70 of 2020

Financial Regulatory Authority
FINANCIAL REGULATORY AUTHORITY

Chairman of the Authority

Board Resolution of the Financial Regulatory Authority No. (70) for the year 2020 dated 20/4/2020 Amending Board Resolution No. (193) for the year 2018 Regarding the Financial Solvency Standards for Companies Licensed to Conduct Factoring Activities

The Board of Directors of the Financial Regulatory Authority Having reviewed Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; And Law No. (176) of 2018 organizing the activities of financial leasing and factoring; And Presidential Decree No. (192) of 2009 issuing the Statute of the Financial Regulatory Authority; And Board Resolution No. (193) of 2018 regarding the Financial Solvency Standards for Companies Licensed to Conduct Factoring Activities; And after approval by the Board of Directors in its meeting held on 20/4/2020.

Has decided

(Article One)
The provisions of Articles (2 - last paragraph, 5 - last paragraph, 6 - second paragraph of item first) of the Financial Solvency Standards for Companies Licensed to Conduct Factoring Activities attached to the aforementioned Board Resolution No. (193) of 2018 are replaced with the following provisions:

Article (2 - last paragraph):
The Company is granted a grace period of three years from the effective date of this Resolution to comply with the provisions of this Article, while committing to refrain from concluding new transactions that would exceed the maximum legal concentration ratio during this period. The Company is also obligated to submit quarterly reports to the Authority detailing the measures taken in this regard.

Article (5 - last paragraph):
The Company is granted a grace period of three years from the effective date of this Resolution to comply with the provisions of this Article, and the Company is obligated to submit quarterly reports to the Authority detailing the measures taken in this regard.

Article (6 - Item First - Second Paragraph):
The Company may apply the aforementioned general allocation ratio gradually, starting at (0.5%), then (0.75%), reaching a ratio of (1%) within a maximum of three years from the date of the financial statements for the period ending on 31/12/2019, to be treated in accordance with Egyptian Accounting Standards.

(Article Two)
This Resolution 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
Dr. Mohamed Omran

Smart Village, Building 136, Giza, Egypt
Postal Code: 110
Telephone: +202 3534530
Fax: +202 35370066
WWW.FRA.GOV.EG

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