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Export-subsidy initiative’s 2nd phase received 950 applications: FinMin

The initiative includes exporting companies giving up 15% of their dues in exchange for the immediate and full cash payment of all overdue dues to exporters

By: Business Today Egypt

Wed, Feb. 17, 2021

The second phase of the export-subsidy arrears from the Export Development Fund has seen a significant turnout, with around 950 export companies having applied to benefit from the immediate payment initiative, says Minister of Finance Dr. Mohamed Maait.

The initiative to support exports includes exporting companies giving up 15 percent of their dues in exchange for the immediate and full cash payment of all overdue dues to exporters.

This was to support the export sector, allowing them to meet customer demands and maintain their workforce after being hit by the effects of the pandemic on global trade movement, as well improve Egyptian products’ competitiveness in the global market.

Maait added that they will continue to receive applications until February 28.

The government has provided around LE 21.5 billion to support the sector and its exporters through 6 initiatives, said Maait.

The previous 6 initiatives has provided LE 5.6 billion to 2500 export companies over the past fiscal year, says adviser to the Vice Minister of Finance, Nevine Mansour, with LE 2.4 billion during the period between July and November 25 2020.

She added that these initiatives helped ensure the continuation of the production wheel, increasing productive capacity, expanding the export base, and enhancing the competitiveness of Egyptian products in global markets by providing the necessary cash to exporting businesses.

The minister confirmed that all exporting companies benefiting from the first phase of the initiative have disbursed all late export support payments to the Export Development Fund, during the past November and December, with a total value of LE 13.5 billion; reflecting the government’s success in achieving the goals of this initiative, which was heavily demanded by exporters.