Chairman of the Board of Directors

Decision No. (32) of 2015 of the Authority's Board of Directors

Dated 27/3/2015
Regarding the Amendment of Certain Provisions of the Authority's Board of Directors Decisions No. (171 and 173) of 2014

Board of Directors of the Egyptian Financial Supervisory Authority

Having reviewed Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments;
And Law No. (141) of 2014 regulating microfinance activities;
And Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Egyptian Financial Supervisory Authority;
And the Authority's Board of Directors Decision No. (158) of 2014 regarding microfinance sectors and their values;
And the Authority's Board of Directors Decision No. (171) of 2014 regarding service fees for entities operating in microfinance activities;
And the Authority's Board of Directors Decision No. (173) of 2014 regarding rules and regulations for companies practicing microfinance activities;
And upon the approval of the Authority's Board of Directors in its session held on 27/3/2015;

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Decided:

(Article One)

The following texts shall replace the provisions of Article (3) and Article (2) of the aforementioned Authority's Board of Directors Decision No. (173) of 2014:

Article (3): Basis for Calculating Provisions

The company shall calculate provisions for doubtful-to-collect financing balances in accordance with the policy it establishes, and not less than the percentages listed alongside each category, as follows:

Provision Percentage	Customer Balances According to Payment Delay
2%	1. Customer balances regularly paid within scheduled dates or not exceeding one week delay
10%	2. Payment delay exceeding one week up to 30 days
25%	3. Payment delay exceeding 30 days up to 60 days
50%	4. Payment delay exceeding 60 days up to 90 days
70%	5. Payment delay exceeding 90 days up to 120 days
100%	6. Payment delay exceeding 120 days
10%	7. Unrecorded customer balances (not exceeding 3 statements)

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(Article Two)

The text of Article Two of the aforementioned Authority's Board of Directors Decision No. (171) of 2014 shall be replaced with the following:

The Authority shall charge a service fee to associations or non-governmental institutions practicing microfinance activities in accordance with the provisions of Law No. (141) of 2014, as follows:

1. A service fee for reviewing temporary license applications amounting to 500 Egyptian pounds.
2. A supervision and oversight service fee at a rate of one-quarter of a thousand (250 pounds per million) of the average financing balance provided to the association's or institution's clients, calculated annually per quarter.

Associations or non-governmental institutions shall pay the supervision and oversight service fee within a period not exceeding six weeks from the end of the financial year.

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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 issuance date.

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Chairman of the Board of Directors
Sherif Samy

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Egyptian Financial Supervisory Authority
Egyptian Financial Supervisory Authority

Office of the Chairman
46076

Source: E. Emad El-Din St. - Cairo - Egypt
Postal Code: 11111 - P.O. Box: 718
Email: info@efsa.gov.eg
Website: www.efsa.gov.eg
Telephone: (202) 27727123
Fax: (202) 25741000