The Export Credit Guarantee Co. of Egypt signs a cooperation protocol with the British office of Clyde and Co. to improve the external debt collection services provided by the company to support exporters who suffer from problems in collecting their financial dues from export operations. The service also includes Egyptian banks and factoring companies that finance external operations and have problems collecting these dues. It is worth noting that Clyde & Co’s office has extended branches around the world employing more than 2500 specialized attorneys. It was noted their strong presence in the Middle East and Africa, which mainly interests the Egyptian market, which encouraged the Egyptian company to negotiate with them to provide their services in Egypt through the company.
Madam Mervat Sultan, Chairman of the Company’s Board of Directors, stated that the company was keen to reduce the burden of collection on Egyptian companies and it was agreed with Clyde that the collection should be based on a lump sum of the collected amount without fining the source of any advance fees. Mr. Mohamed Azzam, the managing director of the company, stated that the external debt collection services are among the most important services that complement credit and that the company will put all its experiences in collecting the debts during the past 28 years in the service of companies and banks operating in Egypt.
The company has finished preparing its new products to secure non-bank financial institutions, especially factoring and financial leasing, as part of the company’s strategy to contribute to developing financial inclusion using insurance. These products aim to help non-bank financial institutions achieve stability in default rates and enable them to obtain financing at better rates by insuring risks for the benefit of the financing bank or in securitization operations.
The company is currently developing a new product that helps the exporter obtain pre-shipment financing to purchase production inputs necessary for manufacturing so that it can implement the export contract entrusted to him and benefit from the non-payment guarantee after that. It has been noticed in the recent period that it is difficult to complete many exports because the exporter is unable to finance working capital and it is expected that the product development will be completed within the next few months.