Egypt’s Minister of Trade and Industry Nevine Gamea announced that the Export Development Fund has provided EGP 2.4bn in subsidy to exporters in implementation of the second phase of the lump-sum export subsidy dues payment initiative.
The hand-outs reached a net worth of EGP 2.2bn, after deducting all tax and natural gas debts.
Gamea said that she had agreed to extend the deadline for companies to apply for the initiative from 31 January 2021 to the end of April. Payment certificates for this period will be issued next June, with the aim of facilitating exporting.
The minister explained that the availability of these financial dues comes as part of the presidential directives to support Egypt’s export sector.
She added that paying exporters’ dues will greatly contribute to increasing their production capabilities and enhancing competitiveness of Egyptian products in foreign markets, especially in light of the novel coronavirus (COVID-19) crisis.
The immediate payment initiative was jointly launched by the Ministries of Trade and Industry, and Finance, in coordination with banks. It allows for the payment of 85% of the total value of dues in lump-sum, instead of paying it in installments that may take several years.
This contributes to providing cash liquidity to enable exporting companies to fulfill their obligations towards their customers and preserve employment.