Board of Directors Secretariat

Decision of the Board of Directors of the Authority No. (16) of 2016

Dated 28/2/2016
Regarding the Amendment of the Rules and Regulations Governing the Microfinance Activities of Companies

Board of Directors of the Financial Regulatory Authority
Having reviewed the Law Regulating Supervision over Non-Banking Financial Markets and Instruments, issued under 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. (173) of 2015 Regarding the Rules and Standards for the Microfinance Activity of Charitable Associations and Institutions and its Amendments;
and upon the approval of the Board of Directors of the Authority in its meeting held on 28/2/2016.

Decided

(Article One)

A new article numbered (25 bis) titled "Early Repayment" shall be added to the Decision of the Board of Directors of the Authority No. (173) of 2014 Regarding the Rules and Regulations Governing the Microfinance Activities of Companies, with the following text:

"Companies are obligated to accept their customers' requests for early repayment.
The company may deduct the financing cost for the month in which early repayment was made, and may add an early repayment commission not exceeding 5% of the remaining amount due to be paid early."

(Article Two)

Licensed companies conducting microfinance activities are obligated to accept their customers' requests for early repayment regarding existing financing contracts, in accordance with the controls stipulated in the preceding article.

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(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