Insurers will provide loans to companies

The ministry of finance plans to relax the insurance Code, paving the way for insurers to provide loans to corporate business. As from next fall, the new regulations will allow insurance companies to provide direct loans to unlisted companies and to invest in certain types of stocks. The authorities intend to restrain the powers of insurers by limiting this activity to 5% of the turnover and to 1% per partner. Furthermore, they will require the valuation of securities and the observance of a quality charter. A certified management company will be entrusted with the follow up of credit risk evolution.