A number of analysts warned against the speeding of brokerage firms to settle the credit of investors. It will be a sudden and rapid response to the request of the General Authority for Financial Control to settle these operations this month. Experts say suddenly settling for credit accounts will cause a sudden collapse to the market, since companies will have to sell shares to investors to settle their credit transactions. This will greatly influence the market and investors, who can lose all their investments during the settlement as a result of their shares being sold quickly at low prices. The credit system is like a margin procurement mechanism but is not organized or allowed by law in the capital market since it is based on allowing company financial facilities above their credit standing to make purchases worth more than the financial assets of the company. Chairman of the Division of Securities, Awni Abdel Aziz, warned strongly against companies liquidating conservative customers and selling their shares. Responding to the request of the Public Authority for the financial need to adjust the credit positions during the month, companies noted this could lead to the collapse of the market again and increase problems. Abdul Aziz said the time is not right for such sudden action, pointing out the market is suffering from a severe lack of liquidity. Therefore it cannot load investors with burdens on their credits and stressing the need to adopt mechanisms will stimulate the market to attract new liquidity and to encourage dealers to invest in the stock market and not vice versa. Financial analyst Rania Nassar said the credit system pursued by brokerage firms in their dealings in the money market will be the most serious problem in the upcoming days and threaten a veritable disaster for either market or investors. The Vice President of the Egyptian Society for the Study of Finance and Investment, Mohsen Adel, said any radical changes now will lead to a necessary phenomenon of "getting rid of the debts of customers" of the companies. They represent a burden on the taxpayers, which may lead to a breach of principle of justice in the distribution of public burdens for investors. Adel said it must be made easier for companies to license the margin purchase with adjustable current rules for the application of this system by increasing the number and scope of securities subject to it and deal with the flaws of the system. Arabic here
