The Egyptian Parliament approved on Saturday a factoring and financial leasing bill at a general session headed by Parliament Speaker Ali Abdel Aal, in the presence of Sahar Nasr, minister of investment and international cooperation, according to a ministerial press statement.
Nasr emphasised the factoring and financial leasing law’s importance as it integrates with a range of other laws that contribute to the economic reform programme’s implementation, adding that the Egyptian Parliament plays a vital role in issuing important laws in collaboration with Egyptian authorities.
Nasr noted that the factoring and financial leasing bill comes as part of the country’s attention towards developing its financial inclusion plans, as well as boosting investment and pushing economic activities to increase production and employment indicators.
Nasr added that her ministry, in collaboration with the Financial Regulatory Authority(FRA) comprehensively reviewed the factoring activities in order to set specialised development plans as it provides diversified funding tools for projects, noting, “we benefited from the international experiences on setting the factoring and financial leasing law. Investment always requires opening new windows and creative financial tools.”
“The new law merges factoring and financial leasing activities in one law which also allows firms and licensed non-governmental organisations to practice microfinance activities in light of the FRA board members’ new measures, aiming to support entities that practice microfinance activities,” Nasr noted.
Nasr mentioned that the new law will help to reach societal segments that do not benefit from many financial services, noting that the bill is an additional incentive for small industries, which will help offer new job opportunities.