Moody’s said that the launch of a movable collateral registry by Egypt’s Financial Regulatory Authority is credit positive for Egyptian banks which have been mandated to improve lending to risky small and midsize enterprises
The agency, in a report, said the registry would improve banks' ability to secure movable collateral and cut risk exposure to small and midsize enterprises (SME), whose movable assets are often the main or only collateral available.
SMEs, which account for about 80 per cent of the country's GDP, have been hurt by a lack of access to financing due to "relative lack of financial transparency" the report said.
The central bank in response said banks would be required to increase lending to SMEs to 20 per cent of total loans by 2020, as the country's drive to boost lending to SMEs and create private sector jobs.
