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General Authority for Financial Supervision Decision No. 45 of 2011 Concerning Rules for Calculating the Maximum Liabilities-to-Equity Ratio for Financial Leasing Companies
The General Authority for Financial Supervision issued Decision No. 45 of 2011 to amend the regulatory framework governing the maximum liabilities-to-equity ratio for financial leasing companies. The decision replaces prior provisions by authorizing leasing firms to structure operations through tripartite loan agreements with banks and financial lessees, restricting the firm's involvement to rent collection and collateral agency. Consequently, the financial lessee bears exclusive repayment liability to the lending bank, completely removing any recourse against the leasing company.
Egyptian Gazette - Issue 147 on June 27, 2011, Page 15
General Authority for Financial Supervision
Decision No. 45 of 2011
Date: 15/6/2011
Concerning the Rules for Calculating the Maximum Ratio of Liabilities to Shareholders' Equity for Financial Leasing Companies
Chairman of the Board of Directors of the General Authority for Financial Supervision Having reviewed the Financial Leasing Law issued under Law No. 95 of 1995 and its executive regulations; and Law No. 10 of 2009 concerning the regulation of supervision over non-Egyptian markets and financial instruments; and the Statute of the General Authority for Financial Supervision issued by Presidential Decree No. 197 of 2009; and Decision No. 2864 of 2003 of the Chairman of the General Authority for Investment and Free Zones; and Decision No. 1 of 2011 of the Authority's Board of Directors concerning the rules for calculating the maximum ratio of liabilities to shareholders' equity for financial leasing companies; and the approval of the Authority's Board of Directors in its meeting No. (6) held on 15/6/2011;
Has Decided:
Article 1 - The text of Article 1 of the aforementioned Decision No. 1 of 2011 is hereby replaced with the following:
"A financial leasing company may, if it deems appropriate, delegate certain of its operations through a tripartite loan agreement concluded with a bank and a financial lessee, whereby the bank lends to the company for the purpose of financing the financial lessee, provided that the company's role is limited to collecting rent from the lessee and acting as a collateral agent on behalf of the bank, and that the ultimate obligor for repayment vis-à-vis the bank is the lessee without recourse to the company."
Article 2 - This Decision shall be published in the Egyptian Gazette and shall take effect from the day following its publication date.
Chairman of the Board of Directors
Dr. Ashraf El-Shokaty
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The links and the sentences they come from (3)
- Issued under
“and Law No. 10 of 2009 concerning the regulation of supervision over non-Egyptian markets and financial instruments;”
- Financial Leasing Law issued under Law No. 95 of 1995Not in RegAlert
“Having reviewed the Financial Leasing Law issued under Law No. 95 of 1995”
- Statute of the General Authority for Financial Supervision issued by Presidential Decree No. 197 of 2009Not in RegAlert
“and the Statute of the General Authority for Financial Supervision issued by Presidential Decree No. 197 of 2009;”
Mentions (1): 1 document mentions this one without changing it
- Referred to by
“and the Board of Directors Decision No. 45 of 2011 regarding the criteria for calculating the maximum ratio of liabilities to equity for financial leasing companies;”
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Source: Financial Regulatory Authority Egypt — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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