Egypt's current account gap narrows, but overall BoP records deficit    Egypt's PM reviews debt reduction strategy, eyes more private investment    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt, India discuss expanding industrial, investment partnerships    World Bank proposes Egypt join new global health initiative    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Egypt welcomes 25-nation statement urging end to Gaza war    Egypt, Senegal sign pharma MoU to unify regulatory standards    Egyptian pound ticks down in early Tuesday trading    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt, Somalia discuss closer environmental cooperation    Egypt exports 175K tons of food in one week    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



FRA introduces new type of investment funds specialised in transferred financial values
Transferred financial value funds provide financing for all financing companies, says Omran
Published in Daily News Egypt on 25 - 06 - 2020

The Financial Regulatory Authority (FRA) has introduced a new type of investment funds specialising in transferred values, according to FRA Chairperson Mohamed Omran.
The new fund will see the transfer of all or part of its future financial rights portfolio from non-bank financing activity regulated, so it can obtain the present value of instalments due on its customers. It represents a financing alternative to real estate finance, financial leasing, consumer finance, factoring, and microfinance companies.
Omran said the step aims to achieve integration between non-bank financial activities subject to the authority's control, and provide diversification of funding sources to non-bank financing companies.
It will allow companies to find non-traditional financing alternatives, as these types of funds are eligible to collect savings for investment in the non-banking financial sector according to a clear investment policy.
The move will help overcome the problem of low capacity in generating capital for economic development. The new fund will also add the productive assets necessary to raise the rate of production and growth in all areas of economic activity.
Omran stressed the credit policy will include identifying the risks associated with the activity's practices, such as credit and concentration risks as well as liquidity risks. At the same time, it will specify the obligations of the assignor, or the non-bank financing companies, and the assignee, or the investment fund.
There will also be a commitment to providing an electronic link between non-bank financing companies and a fund investment to promote the digital transformation.
The new rules also permit the non-bank financing company to assign future financial rights to the investment fund in collecting the instalments due from its clients to the investment fund account. The investment manager is responsible for following through with the automatic linking.
Private equity funds provide financing for non-bank financing companies and add new activity to investment funds. They also provide new financial tools for investors through subscriptions to investment securities issued by dealing funds in other transferred values.


Clic here to read the story from its source.