Mohammed Refaat Al Houshy, managing director of the Egyptian Credit Bureau I-Score, called on the formation of a SME bank to lend, monitor and supervise small and medium enterprises (SMEs) together with a loan guarantee company.
At the SMEs Conference held today, Al Houshy suggested forming a SMEs credit bureau to facilitate the financing process. This company may be established next year as there is expectations that political situation will be stabilizes and the economy will recover.
Al Houshy stressed on the importance of having a ministry for SMEs such as in Mexico as well as setting incentive plans that encourage investors to establish SMEs such as tax-cut or tax-exemption for two years.
Creating industrial, trade and businessmen unions will contribute in developing SMEs, Al Houshy said, calling on the government to increase its purchases from SMEs.
He affirmed on the importance of providing vocational training and raising awareness of the owners of small enterprises on finance, management and marketing.
He also suggested launching new financial products for SMEs such as low-cost finances with return not exceeding 5% or 6%, instead of 12% and creating new machinery for transferred collaterals under the name of transferred collaterals registration.
Al Houshy hailed the initiative taken by Central Bank of Egypt in launching a database of 36,000 SMEs and he also stressed on the importance of amending laws of bankruptcy and creditors rights to improve credit rating sector in Egypt.
