The Egyptian government has introduced a new law aimed at supporting small and medium-sized enterprises. Law No. which was not provided, regulates the usufruct rights of properties allocated to projects and provides mechanisms for dealing with debts owed to the state treasury by struggling projects. This includes granting payment deadlines and the possibility of partial or full exemption from these debts, according to legal rules.
According to the law, in cases where a property is allocated through the sale of usufruct rights and this right is mortgaged to guarantee financing for projects subject to the law, the usufruct right does not expire until the end of its specified period. This applies even in the event of the beneficiary's death or the termination of their legal personality. The law also keeps the mortgage valid for the benefit of the mortgagee if the usufruct right contract is annulled or terminated.
The law allows the mortgagee to request an extension or renewal of the usufruct right period from the competent authority, according to conditions to be determined. The applicant must be notified of the authority's decision and its reasons. In cases of abuse of rights or if there is a legitimate interest worthy of protection for the mortgagee, the applicant can appeal to the relevant agency for an extension or renewal according to legal procedures.
The law also authorizes the Council of Ministers, after coordinating with the Minister of Finance or the competent authority of a wholly state-owned company, to establish rules for granting payment deadlines for debts owed to the state treasury and state-owned companies by struggling projects. Additionally, it allows for the establishment of rules for partial or full exemption from these debts, including late fees.
Decisions on debt rescheduling or exemption will be made according to governing laws and at the request of the relevant agency. This move aims to alleviate the financial burden on struggling projects and provide them with opportunities to recover and continue their activities.
By introducing these regulations, the Egyptian government seeks to create a more supportive environment for small and medium-sized enterprises. This is expected to contribute to economic growth and job creation, as these enterprises play a crucial role in the country's development.
The law represents a significant step towards providing relief to struggling projects and promoting economic recovery. Its implementation is expected to have a positive impact on the business environment in Egypt, encouraging investment and entrepreneurship.
Key points
- The law introduces regulations for usufruct rights and rescheduling debts owed to the state treasury by struggling projects.
- The regulations aim to support small and medium-sized enterprises and promote economic recovery.
- The law allows for granting payment deadlines and partial or full exemption from debts owed to the state treasury.
