CAIRO, April 2 (MENA) - Chairman of the Financial Regulatory Authority (FRA) Mohamed Omran has said the authority is seeking to introduce short-term debt-based financial instruments of one year or less in view of the growing importance of short-term debt markets across the globe. The authority also seeks to introduce these short-term debt instruments that could range from 7 to 30 days to cope with the increasing importance of the small and medium-size enterprises (SMEs), Omran added. Speaking at a press conference held at the headquarters of the General Investment Authority premises on Sunday evening, Omran announced the 2018-2022 national strategy for financial services. Regarding Risk Management for Hedge Funds, Omran said the size of these funds in Egypt is still limited and most of them are unofficial in spite of their importance. Hedge funds saw total assets under management (AUM) jump 24 percent to 3.2 trillion dollars between September 2014 and 2016, according to the fourth International Organisation of Securities Commissions (IOSCO) hedge fund survey. Moreover, FRA has outlined a national strategy of non-banking financial services meant to hone the competitiveness of the Egyptian economy and lure more foreign investments. The 2018-2022 strategy complements a 2030 sustainable development plan, Omran told a press conference Sunday evening. The strategy aims to also benefit from advanced foreign expertise and improve the levels of transparency and good governance, Omran said. He told reporters part of the strategy has to do with countering corruption and strengthening the institutional framework. The FRA, he added, seeks to create a non-banking financial containment system in order to improve levels of financial inclusion and contribute to achieving sustainable development and social justice. This strategy should help develop tools to fund national and infrastructure projects, Omran further said. The strategy also has in mind small and medium-sized enterprises, the FRA chairman said, noting that parts of the funds should be allocated for that sector. The strategy is also meant to bankroll micro-sized projects of marginalised segments as part of a plan to achieve economic growth that covers all segments of society, Omran noted.
