Egypt’s Minister of Finance Mohamed Maait has announced that 950 companies have benefited from the second phase of the lump-sum payment initiative of export subsidy dues owed by the Export Development Fund (EDF).
Under this initiative, exporters can receive their subsidy dues in full, instead of several instalments over four or five years, before the end of next December, provided that a 15% of the sum will be cut.
The initiative has experienced a remarkable demand by exporting companies, with the 950 companies applying since the introduction of the second phase on 7 February.
Maait noted that the initiative aims to speed up paying export subsidies to companies.
In this way, it will contribute to providing cash liquidity that enables exporting companies to fulfil their obligations towards their customers and preserve workers. It will also help increase production capabilities and enhance the competitiveness of Egyptian products in global markets.
He pointed out that requests of exporting companies wishing to join the second phase of immediate cash payment initiative will continue to be received until 28 February at the Ministry of Finance.
The dues of exporting companies are scheduled to be disbursed over three phases before February-end, April, and June.
Maait said that the government has spent approximately EGP 1.5bn over 12 months to support Egypt’s export sector through six initiatives.
He noted that 1,069 exporting companies joined the first phase of the lump-sum payment initiative. The government has disbursed EGP 13.5bn for all exporting companies under the first phase of the initiative, Maait concluded.