Egypt’s movable collateral registrations rise 11.9% to 285,015 at end-August – FRA

The number of notices registered on Egypt’s movable collateral registry rose 11.9 per cent to 285,015 at the end of August from 254,814 at the end of February, the Financial Regulatory Authority (FRA) said on Monday.

The value of registered collateral increased 15.4 per cent over the same period to around 4.6 trillion Egyptian pounds from about 4 trillion pounds, the FRA said.

The Egyptian Movable Collateral Registry allows security interests over movable assets to be registered, amended, and cancelled. Such assets can be used as collateral to secure financing for investment activities.

The system is intended to reduce financing costs and the time needed to verify collateral and credit risks, while improving information available on pledged assets and transparency, according to the FRA.

The registry was upgraded earlier this year under the FRA’s direct oversight, with e-Finance developing and operating the electronic system. The upgraded platform expanded digital services for creditors and borrowers and allows movable assets to be used as collateral without transferring possession.