Cabinet approves Consumer Credit Act, sent to house for final vote

LEGISLATION WATCH- The Madbouly Cabinet has reportedly approved the a bill that would create a consumer credit act and has sent it to the House of Representatives to become law, unnamed government sources told El Watan. The bill would, among other things, require companies to obtain a license from the Financial Regulatory Authority to sell goods on installment (see our note on that earlier this month). The 22-article draft would require companies seeking a license to have at least EGP 10 mn in capital The FRA will only grant licenses to companies who operate exclusively in consumer finance, which the proposed law defines as “any activity or operation aiming to fund purchases of consumer and durable goods and transportation vehicles”, and related sectors.