FRA approves licensing SMEs credit rating companies

CAIRO, 2 September 2019: The Financial Regulatory Authority (FRA) approved offering licenses to credit rating companies specialized in small and medium-sized enterprises (SMEs) in a step that will make it easier for them to get loans and issue bonds.

In a statement on Monday, FRA Chairman Mohamed Omran said the measure will enable SMEs to issue all kinds of bonds, including medium-term and short-term ones.

He referred to amending the capital market law last year to facilitate short-term lending, underling the importance of commitment to credit rating.

He also cited a law issued in 2018 to boost financial leasing to serve SMEs.