Circular Letter No. 2 of 2023 Amending Circular Letter No. 2 of 2023 Regarding Creditors' Reporting to the Central Bank of Egypt and Credit Reporting Agencies

FINANCIAL REGULATORY AUTHORITY

Deputy Chairman

Circular Letter No. (2) dated 8/5/2023
Amending Circular Letter No. (2) dated 16/3/2023 Regarding the Reporting by Creditors to the Central Bank of Egypt and Credit Reporting Agencies

In the context of the Financial Regulatory Authority's role in ensuring the safety and stability of financial markets within the non-banking financial sector, and providing the means, systems, and issuing rules that guarantee the efficiency of these markets and the transparency of the activities conducted therein,

And in accordance with the preparation of a database for all credit-granting entities, whether in the banking or non-banking financial sectors, with credit information companies, in implementation of Article (113) of Central Bank Law No. 194 of 2020, which stipulates that "Banks and credit-granting entities are committed to the continuous registration of customer profiles immediately upon approval of granting them financing or credit facilities, and the Central Bank may request any necessary amendments to update this system and ensure its data covers the profiles of debtor customers, and this system must be linked to the aggregated information database of the Central Bank and credit reporting and rating companies, and banks and credit-granting entities must inform the Central Bank and credit reporting and rating companies of a statement regarding the profile of each customer who receives approval for credit facilities, in the manner specified by the rules and procedures issued by the Board of Directors."

And in light of the foregoing, it is required that private debt collection agencies handling securitization operations for financing portfolios, after the effectiveness of the assignment (after covering the subscription in securitization bonds), continue to report customer debt balances to the Central Bank's credit registration system and to credit reporting agencies immediately upon the signing and effectiveness of the agreement. This reporting must be within the scope of the securitized portfolio and any new credit receivables arising therefrom, until the full settlement of such debts or the expiration of the contract term. It must be clarified that these debts have been securitized and are not part of the collector's credit portfolio, and this must be stipulated in the service and collection agreement concluded between the securitization company and the entity responsible for collection.

Executed on: 8/5/2023

Deputy Chairman of the Board of Directors
Financial Regulatory Authority

Dr. Islam Azam

Smart Village, Building 136, Giza, Egypt
Postal Code: 110
Telephone: +202 35345350 Fax: +202 35370036
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