Expats could send some EGP 50 bn (c. USD 2.5 bn) into Egypt under a cabinet program that will allow Egyptians living abroad to buy new cars in exchange for hard currency, Finance Minister Mohamed Maait said in an interview with Bloomberg Asharq .
Maait was speaking on the sidelines of the IMF / World Bank meetings, which concluded yesterday.
How will this work? Cabinet hasn’t released details, but we expect expats abroad will be required to buy through authorized local distributors, who will place orders with manufacturers and assemblers and bring the cars into Egypt. Buyers will pay customs fees, VAT, and other taxes upfront in FX.
They will then receive a full rebate on the dues in five years’ time — paid EGP at the USD-EGP exchange rate at that time and without interest. Cabinet unveiled the contours of the program last week.
