Cairo: The Financial Regulatory Authority (FRA) has introduced amendments to the rules governing foreign-currency financing for factoring and financial leasing companies, offering increased flexibility in financing transactions and broadening the range of permitted funding sources.

According to State Information Service Egypt, the FRA Board, led by Islam Azzam, approved revisions to regulations under Decision No. 318 of 2025. These changes aim to address practical issues that arose following the initial implementation of the rules. The revised framework allows foreign-currency financing for sale-and-leaseback transactions, which can be used to finance imports, purchase assets, or settle foreign-currency obligations tied to a client's business. This measure applies to financial leasing and financing for small and medium-sized enterprises (SMEs).

Foreign-currency financing will continue to be available for import-related transactions, contingent upon the support of documentary credits or other verifying documents. Notably, clients operating within free zones are exempt from this requirement, providing them with additional flexibility.

In terms of international factoring, the FRA has relaxed requirements as well. For non-recourse factoring, entities such as banks, insurers, venture capital firms, and foreign financing institutions, approved by the FRA, may now replace the correspondent factor to safeguard the rights of involved parties.

The amendments further expand the sources of foreign-currency funding accessible to factoring, financial leasing, and SME financing companies. These firms can now secure loans from shareholders, subsidiaries, affiliated companies, as well as from their own resources, banks, and approved foreign financing institutions.

Azzam emphasized that the changes are designed to offer greater flexibility to factoring and financial leasing companies, while ensuring effective oversight and protection of all parties' rights. He noted that the amendments are a response to practical challenges observed since the earlier regulations took effect earlier this year.