The Egyptian cabinet has reviewed the executive position of the lump-sum payment initiative of export subsidy dues owed by the Export Development Fund, for applications completed until 30 June 2020.
The review came during a cabinet meeting headed by Prime Minister Mostafa Madbouly, during which it was also noted that 1,580 exporting companies had applied to join this initiative.
The tax and customs status of all these companies had been obtained, with the Ministry of Finance sending the position of these companies to the Export Development Fund.
The fund has since issued certificates to 1,126 exporting companies. A total of 1,069 companies have received EGP 12.2bn in gross financing, from four banks participating in the initiative, namely the National Bank of Egypt (NBE), the Egyptian Bank for Export Development (EBE), Banque Misr, and Banque du Caire. The companies have netted a total of EGP 10.3bn after cutting 15% for accelerated payment.
This new initiative to support exports comes in light of the Egyptian government’s constant endeavour to stimulate the country’s investment climate. It also looks to encourage industry, and increase exports through specific mechanisms, to settle the arrears owed to exporters with the Export Development Fund.
Also approved was the proposal of the Ministers of Finance, and Trade and Industry, to open the door for a number of companies to benefit from this initiative, within the framework of the previously specified amount.