While the debt collection outlook in Egypt is better than most North African countries, it still helps to have local experts on your side. Cedar Financial’s clients see greater collections success with:
With on-the-ground representatives in Cairo and along the Nile, you can trust our “People-First” approach to resolve any claim, in less time, with more positive payment outcomes for your business.
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Egypt is the most populous country in North Africa, the Middle East and the Arab world, with over 100 million inhabitants. While Christianity is a large minority, Egypt is primarily a Muslim country, with Islam the main religion and Arabic the official language.
Creditors recovering debt in Egypt see higher levels of success when they work with a local Egyptian debt collection agency familiar with the language, culture and laws.
In recent years, Egypt has had an issue with mounting public debt in its economy; however, it has a four-year plan in place to reform laws and modernize systems to significantly reduce its debt. which means a better outlook for foreign companies trying to collect on debts in Egypt.
Egypt aims to achieve a growth rate of over 6% and an inflation rate of 12% in 2020 and of 9.8% by the end of 2022, according to the Egypt Independent. In addition, Egypt is making amendments to income tax law and a new real estate tax law is being prepared to reduce the tax burden on the manufacturing sector.
While the debt collection outlook in Egypt is better than most countries in the region, it still helps to have local experts on your side. Cedar Financial has on-the-ground representatives in Egypt ready to advance your claim(s). Contact us today to get started.
Despite economic reform, poverty is widespread. Political and economic uncertainties, combined with a sometimes-difficult business environment, can affect payment behavior in Egypt.
An April 2019 referendum of constitutional amendments extended the President’s power, giving him direct control over judicial appointments, while extending the army’s control of many of the country’s economic levers. Anti-government protests erupted in September 2019 over frustration with the centralization of power, rendering the business environment unstable.
In addition, the availability of reliable corporate financial information varies, making it more difficult to locate debtors.
To reduce uncertainties for your business, Cedar Financial offers full-service accounts receivable management solutions in Egypt, including credit reports, in-person field visits, skip tracing services and professional credit risk consultants. Talk to one of our representatives today to learn more.
While every effort is made to resolve accounts amicably, sometimes a firmer approach is needed. Here’s what you need to know about legal process in Egypt.
Below is a step-by-step guide to the Egyptian legal process:
Successful litigation can be difficult for creditors unfamiliar with the legal process in Egypt. Cedar Financial carefully vets professional Egyptian debt collection lawyers to manage your case for you.
To learn more about our low-cost legal options, request a quote today.
While judges in Egypt respect and cherish principles of due process and accessibility to justice, a large number of cases before the courts has resulted in a huge case backlog, impacting the efficiency of the judicial system.
Creditors can expect the process to take a long time, with typical proceedings taking approximately two to three years. Appeals can take up to two years. Upon errors of law, a further appeal may be made to the Court of Cassation.
The good news is that judges are competent and impartial, so despite the delay, you can expect equal treatment and fair judgement in Egyptian court.
Long legal battles can cost you significant time and resources. Cedar Financial’s team of professional debt collection attorneys in Egypt handle everything for you from start to finish. We are familiar with the ins and outs of the legal system and work diligently on your behalf to keep proceedings moving.
Court fees may be substantial, as the Ministry of Justice raised court costs in 2009 to prevent frivolous proceedings. The unsuccessful party is responsible for costs, and this is enforced by the court. Lawyer fees are usually negligible and enforced by the court as part of the award. Interest may be awarded on costs up to 4%, if the party fails to pay or object within a certain period.
The prospect of paying legal costs can discourage many creditors from taking legal action. But done right, legal action is an essential part of your collection strategy.
At Cedar Financial, we take your best interests to heart by thoroughly vetting every claim for collectability in court before filing suit. This ensures the best chance of success before, during and after legal proceedings. We never recommend litigation unless we truly believe it will be worthwhile to you.
Due in part to the problem of the overloaded courts, the Egyptian legislature formulated the Arbitration Law No. 27 of 1994 to encourage arbitration as the main alternate, parallel mode of resolution for business, commercial and investment disputes, both domestic and international.
The arbitration agreement must be in writing, in a contract or correspondence signed by both parties, and settlement via arbitration must be possible. In the absence of an agreed time, the arbitral tribunal should render an award within 12 months.
Once rendered, the award is final and cannot be reviewed before the courts, except in the case of nullity proceedings, which are mostly based on procedural grounds.
Having a professional Egyptian legal collections agency on your side can help speed resolution of your claim(s) and reduce legal costs.
By starting legal proceedings, Cedar Financial is often able to open discussion with uncooperative debtors, enabling us to enter arbitration or agree on a settlement and avoid additional costs.
|Unpaid Invoice Interest Rate||
|Can Collection Fees be added?||No.|
|Statute of Limitations/Prescription||7 years.|
|Post Judgment Interest Rate||Limited to 4%.|
|Judgment Expiration||Judgments don’t expire and can be enforced anytime until the full judgment sum is paid.|
|Can judgment be renewed?||Judgments can only be renewed on appeal.|
We offer on-the-ground representatives in Egypt who understand the debt collection practices that work to support full recovery of your funds.
We have expertise with the characteristics of our local market, professionalism in dealing with consumer and commercial debt cases and a wide network which allows us to serve our clients without limitations.
For pre-legal services, we work on a “no collection – no fee” basis, so you will only pay when your funds are recovered. For legal services, we offer low-cost options.
We have no minimum value or volume that is required to place accounts.
We service consumer and commercial debts, large or small, across many industries.
The timeline greatly depends on the case, negotiations, debtor’s cooperation and the flexibility of the creditor. Normal debt collection proceedings can take up to one year.
We start with an initial investigation into the debtor’s registration and credit information. Phone calls, demand letters, emails and sometimes faxes are then sent out. If the debt is disputed, we request proof from the debtor to send to the creditor. If the debtor cannot be contacted, our Tracing Center will carry out an address and phone search. We also request a face-to-face meeting, if necessary. If all efforts do not lead to payment, we may suggest a legal filing.
The statute of limitations in Egypt is seven years.
Yes, we provide on-the-ground representatives to visit your debtor in person at their location. We skip trace, contact evasive debtors and investigate assets for potential legal action.
Documentation is necessary, especially if the debtor denies the debt. It also helps us to understand the nature of the debt, which helps in our dialogue with the debtor.
Yes. In the event all amicable efforts are exhausted, our in-house legal team will conduct a thorough review of the file to determine collectability in litigation. If the file qualifies and you approve, we will work with the local attorney in your debtor’s jurisdiction to file suit and pursue the claim, including asset location, arbitration, trial representation, obtainment of a judgment and post-judgment enforcement.
Collection fees are not allowed.
* The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.