EGYPT Law and Practice Contributed by: Sherif El Hosseny, Malak El Amiry and Farida Degheidy, Matouk Bassiouny & Hennawy
3.1.4 Downstream, Upstream and Cross-Stream Guarantees Guarantees are acceptable forms of collateral. This includes clauses governing the explicit waiver of cer - tain rights by the guarantors and dispute resolution mechanisms. There is no legal regime that governs the perfection of guarantees. 3.1.5 Lenders’ Share in Security Over Domestic SPVs Special purpose vehicles are incorporated in foreign jurisdictions. It is common for lenders to have share security over such vehicles. A share pledge is recog - nised and can be perfected and the method of perfec - tion depends on the type of entity in question. 3.1.6 Negative Pledges A negative pledge is recognised. 3.1.7 Intercreditor Arrangements There are no restrictions or requirements imposed on intercreditor arrangements. 3.1.8 Syndicated Loans The concept of agency and the role of an agent under a syndicated loan is recognisable. 3.1.9 Debt Subordination Debt subordinations are permissible and recognised. However, there is no legal regime that governs same except for the priority ranking of secured assets, which also depends on the type of security and whether such security can be perfected. 3.1.10 Transfer/Assignment of Debts Under Foreign Laws The transfer or assignment of all or part of an out - standing debt under an English or New York law-gov - erned loan is permissible and recognised. Perfection of such transfer or assignment may be required for Egyptian law purposes.
Authorisations have not yet entered into effect in the Arab Republic of Egypt. The Egyptian Civil Aviation Authority shall recognise this instrument once the rel - evant provisions are effective in the Arab Republic of Egypt”. Currently, the ECAA approves filing the IDERA without the above qualification and there is precedence evi - dencing the deregistration, repossession and export of an aircraft using IDERA. 2.10.4 Enforcement of Conventions There was no court precedent in relation to parties enforcing the Convention or the Protocol until 2022. It is unclear yet how Egypt will enforce them or when. In 2022, various cases were filed before the State Council regarding repossession. While all matters were settled out of court, it was apparent that such courts have no experience or knowledge of the Cape Town Convention and Protocol. 2.10.5 Other Conventions Egypt is a party to the 1948 Geneva Convention on the International Recognition of Rights in Aircraft. Egypt is a party to the 1933 Rome Convention on the Unification of Certain Rules relating to the Precaution - ary Arrest of Aircraft. 3. Aircraft Debt Finance 3.1 Structuring 3.1.1 Restrictions on Lending and Borrowing There are no restrictions on foreign lenders financ - ing an aircraft locally or on borrowers using the loan proceeds. 3.1.2 Effect of Exchange Controls or Government Consents Please see response to section 2.1.4 Exchange Con - trols. 3.1.3 Granting of Security to Foreign Lenders Borrowers are permitted to grant security to foreign lenders. There may be some restrictions regarding real estate security provided to foreign lenders.
3.1.11 Usury/Interest Limitation Laws There are certain interest limitations:
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