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Financial Supervision issues the statute of the Egyptian Consumer Finance Federation


Mohamed Omran, Chairman of the Financial Supervisory Authority, issued Decision No. 47 of 2021 to issue the Articles of Association of the Egyptian Federation for Entities Working in the Field of Consumer Finance, and the text of the decision, which was published in the Official Gazette in its issue No. 98, issued today, Wednesday, on:


Dr. Muhammad Omran, Chairman of the Financial Supervisory Authority, had issued Decision No. 34 of 2021 regarding extending the time limit for reconciling the conditions of practitioners of consumer finance activity, known as "installment companies." For another 6 months from March 18th. "

 

The Financial Supervisory Authority agreed to grant licenses to 16 consumer finance companies, and the authority also approved three sukuk issuances, including two Ijarah sukuk with a total value of 2.6 billion pounds, and the third issue was Mudaraba sukuk with a value of 2.5 billion pounds.

 

What is meant by consumer financing is all forms of financing that aim to enable the borrower to purchase a durable commodity for the purpose of consumption and pay for it over an extended period of time, and according to this definition, consumer finance includes cars, household appliances, tools and equipment, as it primarily addresses the household sector and can also benefit By legal persons.

 

Consumer finance achieves multiple benefits for producers and consumers alike from the producer side, as it contributes to increasing the demand for consumer assets and equipment that they produce in a way that improves production efficiency and profitability, and on the consumer side, it helps improve their living standards and their ability to buy products that they cannot afford to pay. Immediate and well-planned spending.

 

At the national economy level, consumer financing mechanisms help increase domestic demand and thus increase investment, employment and economic growth, as well as push the family sector to better use of resources and increase its ability to plan and save, and finally, consumer finance is one of the main means to achieve social justice because it allows classes Medium and low income groups by using financial services instead of being limited to large companies and high net worth individuals.

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