Mohamed Omran, Chairperson of the Financial Regulatory Authority (FRA), met with several securitisation companies’ representatives to discuss the impact of postponing credit obligations on securitisation bonds.
Mortgage finance, financial leasing, and factoring companies have postponed credit dues for their clients for a period of six months. Clients in these sectors have also been exempted from delaying fines.
The meeting ended with the agreement to invite bondholders to consider whether to extend the duration of bond issuance to a maximum of six months, a statement issued by FRA announced. The move would be subject to precautions considering the current circumstances.
Last year witnessed the highest issuance of securitisation bonds in the history of the Egyptian capital market, totalling 18 issuances distributed over 54 segments with a value exceeding EGP 22bn, which companies used as a source of financing through the Egyptian capital market and the Egyptian Exchange.