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4. Rational Dispute Resolution
4.1 Rule of Law
4.2 Enforcement of Contracts
4.3 Commercial Dispute Resolution
In-Country Assessment

4. Rational Dispute Resolution

Goal – An efficient institutional framework that balances the rights of the public, owners, lenders and borrowers in the event of a dispute or loan default

 

 

4.1 Rule of Law

Core Question:   Do all market participants abide by the rule of law and have confidence in the courts and the ability of police to control crime? No – Weak, law enforcement is weak.

Impartiality

4.1.1   What is the confidence level of the strength and impartiality of the police, courts and contract enforcement? Weak – Percentile Ranking – 42.7 Trend ­

Source: Governance Matters 2011, World Bank, www.govindicators.org

Judiciary

4.1.2   Can members of the judiciary be held accountable for their actions? Yes – Score 75 out of 100 – Strong

 Source: Global Integrity Report 2010 – https://www.globalintegrity.org/global/the-global-integrity-report-2008/egypt/

Costs of Crime

4.1.3   What are the business costs of crime and violence? High costs – Ranking 142nd out of 144 – Score 3.1 out of 7, Very Weak

Source: The Global Competitiveness Report 2012-2013, World Economic Forum – http://www.weforum.org/issues/global-competitiveness
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4.2 Enforcement of Contracts

Core Question:    Are systems in place for timely and efficient enforcement of contracts?
Commercial – No –  Weak             

                                  Residential –  No – Unknown

4.2.1 – Judicial Enforcement

Commercial – Weak – Ranking 94th out of 183 Trend ¯

4.2.1.1          What is the number of procedures involved in resolving a commercial dispute? 42

4.2.1.2          What is the time between the filing of a lawsuit and resolution in judicial enforcements? 1,010 days

4.2.1.3                   What is the cost of judicial enforcements as a percentage of debt value? 26.2%

Source: Doing Business 2013http://www.doingbusiness.org/data/exploreeconomies/egypt#enforcing-contracts

Residential –  Unknown

Survey Questions

SQ 12  What is the time between notice of intent to foreclose and loan collection in judicial enforcements? Unknown

SQ 13  What is the cost of judicial enforcements as a percentage of property value? Unknown

 

4.2.2 – Summary Proceedings

SQ 14  Summary proceedings are alternative dispute resolution processes where creditors can apply for a direct court order in property disputes. What is the time between notice of intent to foreclose and loan collection in summary proceedings if available to lenders?

            Unknown

SQ 15  What is the cost of summary proceeding if available to lenders as a percentage of property value? Unknown

4.2.3 – Power-of-Sale

SQ 16  Power-of-sale agreements give creditors to power to sell properties after notice to the borrower without court intervention. What is the time between notice of intent to sell and loan collection for power-of-sale agreements if available to lenders? Unknown

SQ 17  What is the cost of power-of-sale agreements if available to lenders as a percentage of property value? Unknown

Source – Financing Homes 2008, World Bank and International Housing Finance Corporation  http://www.cipe.org/sites/default/files/publication-docs/Financing%20Homes%202008.pdf
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4.3 Commercial Dispute Resolution

Core Question:         Can commercial disputes be resolved efficiently and fairly without exorbitant expense and delay? No, Weak. Economic Courts were established by virtue of Law No. 120 of 2008 and are competent to hear commercial disputes.

Source: (No longer available) http://www.ebrd.com/E9A045B1-7F8D-448B-9449-E4E41EEED004/FinalDownload/DownloadId-C6B1AB5E14FA216153DEC8A92B970F9A/E9A045B1-7F8D-448B-9449-E4E41EEED004/downloads/sector/legal/egypt.pdf

 

Survey Questions

Commercial Courts

SQ 18  Do specialized commercial courts exist for the handling of property disputes and foreclosures? Yes. Weak

Source: Guide to Doing Business of Egypt in LexMundi World Ready, www.lexmundi.com/Document.asp?DocID=4291

Alternative Dispute Resolution

SQ 19  Are alternative dispute resolution mechanisms in place including commercial arbitration, private mediation and community based processes?  No, Weak.

 Source: Egypt as a Regional Platform for Alternative Dispute Resolution in the Arab Worldhttps://www.wbginvestmentclimate.org/uploads/New%20EGYPT%20FACT%20SHEETdocx.pdf

 

Commercial Treaties

SQ 20  What bilateral, regional and international commercial treaties exist concerning business between countries? The United States remains committed to a strong bilateral relationship with Egypt.The United States could provide additional support to enhance Egypt’s enforcement. The U.S. Commerce Department’s Commercial Law Development Program (CLDP) could sponsor a workshop to help train judges in the new Economic Courts in the adjudication of intellectual property cases.

Source: U.S. State Department Background Notes: http://www.state.gov/r/pa/prs/ps/2012/03/185184.htm

The U.S. Commercial Relationship with Egypt and the Middle East & North Africa: Issues of Importance – http://www.usegyptcouncil.org/0916810E-E5B6-451E-BE86-0859D7EDC715/FinalDownload/DownloadId-8116C11115C41CF5F5442EFFEFA65DFD/0916810E-E5B6-451E-BE86-0859D7EDC715/wp-content/uploads/2011/10/USEBC-Submission-for-USTR-PDF.pdf

 

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In-Country Assessment (As of 2011)

FQ 7. To what extent do practitioners report contracts as enforceable?

 

It is difficult to say. Data and information is not collected. Many of the existing developments are informal, illegal, and unregistered.

 

Source: Egypt Field Question from Lin Mao
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