The banking market does not need any other credit bureau at the moment, according to Central Bank of Egypt (CBE) deputy governor Gamal Negm.
A few days ago, a number of Egyptian and US investors filed a lawsuit at the State Council’s Administrative Court appealing to the CBE’s refusal to allow them to establish a credit bureau under the name ‘EgyScore’.
The lawsuit was filed by lawyer Ibrahim Al-Slamony and is levelled against the prime minister, the investment minister, and the CBE governor.
On 22 August 2005, the CBE approved granting the first licence for credit activity. In January 2008, the Egyptian credit bureau company I-Score received its operating licence, and began operating in March 2008.
Twenty-five banks are associated with the company, along with the Social Fund for Development. This company’s capital is EGP 30m, distributed over 7.5m shares, at EGP 4 per share.
According to the lawsuit, Al-Salamony believes allowing only one company to practice this activity constitutes a monopolistic practice, thus violating all market rules.
However, Negm said I-Score is doing its part well in the field of credit information for individuals and corporations, and it is therefore unlikely that licences will be granted for other companies to work in the same activity during the current period.