FRA registers first two debt collectors as deadline nears

EgyServ and Egyptian International Firm are now the first companies registered to collect dues for NBFIs as the clock ticks down on the six-month grace period the Financial Regulatory Authority (FRA) gave firms in the sector to regularize their collection arrangements, according to a statement from the regulator. Once the grace period expires on 22 July, NBFIs will be barred from outsourcing collections to firms that are not on the new registry.

What changed: The FRA issued the registry framework and a six-month grace period in January under former FRA boss Mohamed Farid. The framework is now seeing its first registration under the new chief Islam Azzam, which requires collection firms to be registered with the authority, meet minimum capital and equity requirements (EGP 10 mn and EGP 20 mn respectively), get FRA approval for contracts with NBFI clients, and limit their work to collecting dues — not providing finance. The rules also tighten the money trail, barring collectors from routing recovered funds through their own accounts and requiring payments to move through approved noncash channels or checks issued to the creditor.

Ritz refresh, faster

Misr Hotels is cutting the Nile Ritz-Carlton Cairo’s renovation timeline to 12 months from 20, as high occupancy pushes the EGX-listed hotelier to accelerate the EGP 3 bn upgrade while keeping the property operating, the Arabic press reports, citing a company official. Misr Hotels tapped a US consultant to prepare room-upgrade samples for approval before work begins, with the overhaul targeting guest rooms, facilities, and services.

IN CONTEXT- The state’s 50.7% stake in Misr Hotels is currently in the process of beingtransferred to the Sovereign Fund of Egypt (SFE). We broke the news in February that the state is moving its most iconic hotels under the SFE to maximize asset value and reel in foreign capital.