Some 2,500 exporters receive EGP 33bln overdue subsidies, Maait
Exporters in Egypt to get more of their overdue subsidies in April
Egypt disbursed 33 billion Egyptian pounds to more than 2,500 exporting companies overdue arrears as part of export support programme, according to the Finance Minister Mohamed Maait.
Exporters in the fourth phase of the government’s program to repay overdue subsidies will see only 8% deducted from subsidies on shipments made from July last year, down from a previous 15% haircut, the Finance Ministry added in a statement.
The Finance Ministry launched a fourth phase of its export subsidy program at the start of November 2021.
He added that the last batch of beneficiaries in the fourth phase of the immediate cash payment initiative will have their dues paid on 28 April, explaining that it is to motivate exporters to maximise their activities, which contributes to bringing the annual export volume to $100bn.
The program allows exporters to receive overdue subsidies in a single payment rather than in installments over four to five years, in return for a 15 % discount
More than 2.5k exporters have received EGP 33 bn in overdue subsidies since the program launched in November 2021, the statement added.
Minister of Finance Mohamed Maait confirmed that the government continues to implement presidential directives to support the export sector by proceeding with the payment of exporters’ dues from the Export Development Fund.
The fund provides exporters with cash that enables them to fulfill their obligations to their customers and maintain employment despite the severity of global economic challenges, including disruptions in supply chains and a sharp rise in commodity prices and shipping costs, embodying an unprecedented inflationary wave and the pressures it imposes on the public budget for the state.
