The return of export subsidies will contribute to providing cash liquidity as exporters continue to deal with the on-going pandemic’s effects on the industry
More than 1,600 companies have submitted requests to join the 3rd phase of Egypt’s immediate disbursement of export subsidies initiative since the 4th of July, says Egyptian Minister of Finance, Mohamed Maait.
The initiative’s 3rd phase saw a remarkable turnout from exporters between July 4 and 29, said Maait in a statement on Thursday.
It involves the payment of subsidies owed by the Export Development Fund to exporters in a lump sum at a 15% discount instead of scheduling payments over four or five years.
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The 3rd phase is being implemented in cooperation with the banking sector to provide 85% of these overdue dues to exporting companies looking for an immediate disbursement.
Payments will begin at the end of September and will last until the end of October, Maait added.
More than 2,000 companies have received EGP 16.4 billion in overdue subsidies in the first two phases of the initiative, Maait noted.
The return of export subsidies will contribute to providing cash liquidity, allowing companies to fulfill their obligations towards their customers and maintain their workforce, as exporters continue to deal with the on-going COVID-19 pandemic’s effects on the industry.
Since October 2019, a total of EGP 28 billion (updated since our piece in June) has been disbursed to 2,500 exporters under several initiatives of overdue subsidy payment.
The Ministry of Trade and Industry announced in late June the launch of a new program for repaying export burdens/subsidies, as part of the ministry’s strategy to double exports and bring in around $100 billion annually.
