Egypt parliament approves financial leasing law

Egypt’s parliament approved the law on financial leasing and factoring and referred it to the State Council, the the new law is presented by the cabinet.

The law decreases the fees of the financial leasing contracts by more than 70 percent with a maximum of  500 Egyptian pounds ($28.19) instead of 3,000, pounds.

A draft law for regulating the financial leasing and factoring was prepared with the assistance of the best international experiences in such matter, considering them non-banking financial instruments to serve the economic projects.

Moreover, the draft law allows the licensed companies, communities and civil society institutions to practice the micro-finance activity and provide micro-financial leasing services, in light of the controls set by the authority’s board.

On the other hand, the law contributed to promoting the financial inclusion and participates in the spread of the non-banking financial instruments all over the state to the society’s categories.