Financial Regulatory Authority Board Resolution No. 92 of 2023 Amending Resolution No. 121 of 2018 on Licensing Conditions, Rules, and Procedures for Microfinance Companies

Al-Waqaya Al-Masriya – No. 91, Part (A), dated April 19, 2023

Egyptian Financial Regulatory Authority
Board Resolution No. 92 of 2023 dated April 12, 2023 amending Board Resolution No. 121 of 2018 regarding the conditions, rules, and procedures for licensing companies providing microfinance services

The Board of Directors of the Egyptian Financial Regulatory Authority, Having reviewed Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; And Law No. 141 of 2014 regulating the provision of medium, small, and micro-enterprise financing services; And Board Resolution No. 121 of 2018 regarding the conditions, rules, and procedures for licensing companies providing microfinance services; And following the approval of the Board at its meeting held on April 12, 2023; Has decided:

(Article 1)
The text of Item (4) of Article Two of the aforementioned Board Resolution No. (121) of 2018 is replaced with the following:
(Article Two – Item "4"):

• 4. The company's issued and paid-up capital shall not be less than seventy-five million Egyptian pounds in cash, or its equivalent in foreign currencies at the exchange rate issued by the Central Bank of Egypt.

(Article 2)
Licensed companies providing microfinance services shall comply with the provisions of this Resolution within a period not exceeding one year from its effective date, and the Board may extend this deadline by up to two years based on justified reasons submitted by the company.

(Article 3)
This Resolution shall be published in Al-Waqaya Al-Masriya and on the Authority's electronic website, and shall be effective from the day following its publication in Al-Waqaya Al-Masriya.

Chairman of the Board of Directors
Egyptian Financial Regulatory Authority
Dr. Mohamed Farid Saleh

[Reference Structure of Amended Resolution No. 121 of 2018]

1. Board Resolution of the Egyptian Financial Regulatory Authority No. (121) of 2018 dated April 30, 2018 regarding the conditions, rules, and procedures for licensing companies providing microfinance services. (As per the latest amendment dated April 12, 2023)

   • The Resolution was amended by Board Resolution No. (92) dated April 12, 2023.

2. (Article One) Obtaining the Authority's preliminary approval for company establishment.
   (Article Two) Licensing conditions.

   • 2. The text of Item (4) of Article Two was amended by Board Resolution No. (92) dated April 12, 2023, and shall take effect upon its publication in Al-Waqaya Al-Masriya. Licensed companies providing microfinance services shall comply with the provisions of this Resolution within a period not exceeding one year from its effective date, and the Board may extend this deadline by up to two years based on justified reasons submitted by the company.

3. (Article Three) Licensing procedures.

4. (Article Four) License inspection.
   (Article Five) Licensing rules.
   (Article Six) Licensing fees.
   (Article Seven) Supervision and supervision cost fee.

5. (Article Eight) Controls for owning 50% or more of the company's capital.
   (Article Nine) [Title].
   (Article Ten) [Title].