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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
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.
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
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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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 ¯
220.127.116.11 What is the number of procedures involved in resolving a commercial dispute? 42
18.104.22.168 What is the time between the filing of a lawsuit and resolution in judicial enforcements? 1,010 days
22.214.171.124 What is the cost of judicial enforcements as a percentage of debt value? 26.2%
Source: Doing Business 2013– http://www.doingbusiness.org/data/exploreeconomies/egypt#enforcing-contracts
Residential – Unknown
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?
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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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
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 World –https://www.wbginvestmentclimate.org/uploads/New%20EGYPT%20FACT%20SHEETdocx.pdf
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
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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