The government launches a new initiative for immediate cash payment of all outstanding export support dues until the end of September with the Export Development Fund in one payment before the end of the year at a 15% discount instead of scheduling them over four or five years.
Dr. said. Mohamed Maait, Minister of Finance, that this comes in implementation of presidential directives, with the support of local and foreign exporting companies operating in Egypt, and to return the accumulated export burdens to provide additional liquidity for the industrial and export sectors.
He stressed that this contributes to providing cash liquidity to manufacturers and exporters that enables them to fulfill their obligations and preserve employment in light of the Corona crisis, and encourages them to expand their investment activities. In order to create more job opportunities, maximize their production capabilities, expand the export base, and enhance the competitiveness of Egyptian products in global markets.
Maait added that this would help advance the national economy, raise growth rates, attract new investments, and maximize public revenues to achieve comprehensive and sustainable development in various sectors to raise the standard of living of citizens by increasing spending on improving public services.
He mentioned that this initiative will be implemented in cooperation with the banking sector, so that the Ministry of Finance issues a “guarantee” to the Central Bank to provide these late receivables until the end of this September for the exporting companies wishing to receive their full dues immediately with an expedited payment discount of 15%, then the Ministry will pay these amounts. And the benefits of three years for the banks participating in this initiative, pointing out that this initiative reflects permanent consultations with export councils and major exporters.
Ahmed Kucuk, Deputy Minister for Financial Policy and Institutional Development, explained that in the event that any exporting company wants to benefit from the new initiative; It signs a final settlement agreement with the Ministries of Commerce and Industry and Finance for its arrears until the end of September with the Export Development Fund, according to which it obtains all due arrears with an accelerated payment discount of 15%.