(3 minutes read)
· Egypt will release the first tranche of lump-sum payment of their export subsidy dues to inject more liquidity with the exporting community
· This will provide exporters their subsidy dues in full and will cut short the delay caused due to staggering of the subsidies over a period of time, say four to five years.
· Only 15% of the subsidy will be deducted upfront
Egypt will release the first tranche of lump-sum payment of their export subsidy dues to inject more liquidity with the exporting community. This was announced by Minister of Trade and Industry Nevine Gamea and the funds will be disbursed from the Export Development Fund (EDF) as a part of the lump-sum payment initiative recently announced by the Egyptian government, to settle the delayed dues of companies to be drawn from the government.
This will provide exporters their subsidy dues in full and will cut short the delay caused due to staggering of the subsidies over a period of time, say four to five years. Only 15% of the subsidy will be deducted upfront.
A total of 903 companies have submitted requests to the fund for disbursement designed to provide exporters with cash liquidity required to fulfill their obligations and preserve employment. About 323 companies will be benefiting from the first tranche of disbursement of the funds, aggregating EGP 3.2bn.
This initiative is designed to provide exporters with cash liquidity required to fulfill their obligations and preserve employment especially during the coronavirus (COVID-19) pandemic. It is in coordination with the Ministry of Finance and banks working in the local market and makes available 85% of the total value of export subsidy dues to be paid to companies in one go. The authority would continue to accept applications for the disbursement of subsidies till the end of this month
