Microfinance Gateway>The Legal and Regulatory Environment for Microfinance in Egypt: Diagnostic Study with Focus on NGO-MFI Transformation Issues

affiliate language sites: Français عربي Español

Home

Library

Jobs

Training and Events

Organizations

Consultants

Library » The Legal and Regulatory Environment for Microfinance in Egypt: Diagnostic Study with Focus on NGO-MFI Transformation Issues

The Legal and Regulatory Environment for Microfinance in Egypt: Diagnostic Study with Focus on NGO-MFI Transformation Issues
15 Jun 2009, Chemonics International Inc. & CGAP
Average Rating: (1 rating)
see all ratings and reviews

Identifying and addressing legal barriers to microfinance growth

This study is a diagnostic assessment of the legal and regulatory environment for microfinance in Egypt.

Successful Egyptian NGO-MFIs are keen to transform into microfinance companies (MFCs) so that they can provide a variety of services and increase their access to funding. Key legal and technical barriers to such transformation include:

Uncertainty regarding NGO’s right to own shares in a commercial company;
Cost of transformation, time needed to complete the process and making changes in their institutional, operational and financial systems;
Interest rate caps;
Prohibition from acting as agents for banks and money transfer companies;
Difficulties in accessing funds;
Information gap due to non-participation of NGO-MFIs in the credit bureau system.

Donors need to support and assist NGOs interested in transformation. Recommendations include:

Creating a path for transformation with Ministry of Social Solidarity (MSS) and Single Regulator consent and donor support;
Exemption from interest rate caps;
Permission for MFCs to act as agents for regulated financial institutions;
Approval from Central Bank of Egypt for banks to extend credit facilities to NGO-MFIs and MFCs;
Donor intermediation between NGO-MFIs and credit bureaus.

Add Review

18 Feb 2010



Moses Banda ROSMO LTD Kenya

Report Abuse


*First Name:		*Last Name:
Organization:
*Email:
*Country:
(rollover stars to select rating)
Review Title:

Review Text:
I do not want my name, email, or organization to appear with my review. (Country will always appear with posted reviews.)

By clicking "Submit" you confirm that you have read and consent to our Privacy Policy and Terms and Conditions.

Download this Document

Journal Volume/Pages:
40

Publisher(s):
U.S. Agency for International Development