FIMBank plc has established Egypt Factors, another joint venture in factoring in Egypt together with Commercial International Bank in Cairo (CIB), the fifth largest bank in Egypt. CIBís knowledge of the local and international market, was linked up with the expertise of FIMBank plc, Malta, a highly specialised institution in trade finance, forfaiting and factoring to bring a strong blend offering Factoring to the Egyptian market.
The International Finance Corporation (IFC), the private financing arm of the World Bank which also focuses on supporting the development of the Small and Medium Enterprises sector participated in the shareholding of this joint venture aimed at launching factoring services with a special focus on international and export activities in Egypt in 2006.
The management of Egypt Factors seconded by FIMBank plc and supported by CIB and IFC closely cooperates with all authorities concerned in order to create an environment in which factoring services can develop to the benefit especially of the local exporting sector. This activity is under the supervision and control of the Ministry of Investment of Egypt.
Bernhard Arnebold, managing director of Egypt Factors, has spent more than 25 years in factoring related activities with a clear focus on international business and with a close cooperation with the correspondent network of the Factors Chain International. He is seconded by FIMBank to spearhead the operation in Egypt.
Factoring is a service package providing for Debtor Administration including Ledgering and Collection of outstanding balances, Bad Debt Protection and Funding. The service will be offered as either a recourse facility (ultimate responsibility that invoices are paid rests with the supplier) or non-recourse facility (the factor covers the risk of insolvency of the buyer). The membership of Egypt Factors in the Factors Chain International (FCI) the leading factoring association in the world allows access to about 60 foreign countries.