The Egyptian Financial Supervisory Authority (EFSA) approved the establishment and operation of the movable assets registry to i-Score, according to i-Score chairperson, Mohamed Kafafy.
A movable assets registry is an electronic record through which the creditor declares and gives priority to its rights secured by movable assets.
i-Score has submitted a bid to tender issued by the EFSA among other companies and obtained the highest technical evaluation to its offer.
According to Kafafy, the company was keen to participate in the establishment of this record to complement its success in the management and operation of projects that serve the banking sector, and to consolidate these objectives and the company’s support of the banking system and other destinations in Egypt.
He added that the company has a strong technological infrastructure, a network linking banks, a database of credit customers up to 13 million clients, a credit database for small and medium enterprises (SMEs) of over 200,000 companies, a database of NGOs that contribute to micro-loans of over 500 associations, and a database of mortgage finance companies and financial leasing.
Kafafy pointed out that the issuance of the movable assets law No. 115 for the year 2015 and its bylaws encourages SMEs to obtain financing by guaranteeing non-real estate assets.
“The establishment of the movable assets registry will contribute to the improvement of Egypt’s ranking in the Doing Business reports issued by the World Bank, especially the getting credit indicator,” Kafafy said.
He pointed out that the company will complete the establishment of this registry within six month of signing the contract with the EFSA.
According to Mohamed Refaat, managing director of the company, the movable assets registry will encourage the banking system to increase the volume of credit granted in exchange for the assets registered in the registry, ie increase the access rates of small, medium, and micro enterprises to finance.
He added that the registry will contribute to proving the right of priority in the arrangement of the rights of creditors and provides easy procedures for the implementation of transactions on the assets, as well as easy search procedures in the registry and make it available to all parties through the search for any assets by different means of research and the issuance of certified certificates for the assets.
“The record of movable assets will reduce the time required for disclosure because of its reliance on advanced technology. It will also reduce the cost of financing, helping individuals and companies get the necessary funding for projects,” he added.
According to Ahmed Abdul Hamid, head of the company’s operations department responsible for the implementation of the project, the movable assets registry is an electronic record subject to the supervision and control of the EFSA. It allows the creditor to declare all the rights secured by movable funds and to give the rights registered in the registry from the date of disclosure priority over the rest of the assets.
He pointed out that the assets are divided into physical assets, such as machinery and equipment, inventory, goods, certificates, deposits, and equipment, as well as virtual assets, such as patent, trademark, designs, and copyrights.
There are also guarantees for future movables. Those include debt ownership, production, imports, and agricultural crops.
According to Abdul Hamid, the company will start in the first phase to establish a major registry in Cairo and a branch in Alexandria to facilitate the procedures to creditors to register their security, and there is a plan to establish other branches in different governorates, according to actual needs.
