Regulatory Alerts2023-01-01
Board of Directors Resolution No. 92 of 2023 Amending Resolution No. 121 of 2018 on Licensing Conditions, Rules, and Procedures for Microfinance Companies
The General Authority for Financial Supervision issued Board of Directors Resolution No. 92 of 2023 to amend the capital requirements and licensing framework for microfinance companies under Resolution No. 121 of 2018. The amended resolution mandates that licensed microfinance firms maintain a paid-up capital of at least 75 million Egyptian pounds (or foreign currency equivalent) and comply with the new provisions within one year, subject to a possible two-year extension for justified cases. Approved on April 12, 2023, the resolution was published in the Egyptian Gazette and on the Authority's website on April 19, 2023, taking effect the following day.
Egyptian Gazette – No. 91, Part (A), dated April 19, 2023
15 General Authority for Financial Supervision Board of Directors Resolution No. 92 of 2023 dated April 12, 2023 Amending the Board of Directors Resolution No. 121 of 2018 Regarding the Conditions, Rules, and Procedures for Licensing Companies Operating in the Microfinance Sector
The Board of Directors of the General Authority for Financial Supervision Having reviewed Law No. 10 of 2009 Regulating Supervision on Markets and Non-Banking Financial Instruments; and Law No. 141 of 2014 Regulating the Operation of Financing for Medium, Small, and Micro-Enterprises; and Resolution No. 121 of the Board of Directors of the Authority of 2018 regarding the conditions, rules, and procedures for licensing companies operating in the microfinance sector; and after the approval of the Authority's Board of Directors in its session held on April 12, 2023; RESOLVED:
(Article One) The text of Item (4) of Article Two of the Authority's Board of Directors Resolution No. (121) of 2018 referenced above is replaced with the following text:
(Article Two – Item "4"):
- 4. The paid-up capital of the company shall not be less than seventy-five million Egyptian pounds cash or its equivalent in foreign currencies at the exchange rate issued by the Central Bank of Egypt.
16 (Article Two) Licensed companies authorized to operate in the micro-enterprise financing sector shall align their status in accordance with the provisions of this Resolution within a period not exceeding one year from the date of its implementation, and the Authority's Board of Directors may extend this period by up to two years in light of serious justifications submitted by the company.
(Article Three) This Resolution shall be published in the Egyptian Gazette, and on the Authority's electronic website, and shall be effective from the day following its publication in the Egyptian Gazette.
Chairman of the Board of Directors General Authority for Financial Supervision Dr. Mohamed Farid Saleh