$1.2bln disbursed to exporters since October 2019: Egypt’s Finance Minister

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Egypt has disbursed EGP 60bn in export support to companies since October 2019, Finance Minister Mohamed Maait said on Tuesday.

In the latest round of disbursements, 360 companies received EGP 5bn under the seventh phase of the immediate cash payment initiative. This phase is expected to be completed by August, with payments made in instalments.

“The government is committed to securing the necessary funding for programmes that stimulate economic activity, particularly those supporting the industrial sector and export activities,” Maait said. He added that EGP 40.5bn has been allocated in the next fiscal year’s budget for these purposes, including EGP 23bn specifically for export support.

Nevine Mansour, advisor to the Deputy Minister for Financial Policies and Institutional Development, explained that financial settlements would be made between exporters’ support dues and the dues of state agencies, such as taxes, customs, electricity, and natural gas.

Mansour highlighted the successful collaboration with the banking sector, the Ministry of Trade and Industry, and the Export Development Fund in implementing the immediate cash payment initiative.

The seventh phase of the initiative will follow the same controls as previous phases, with a 15% discount on the accelerated payment rate for shipments before June 30, 2021, and an 8% discount for shipments between July 1, 2021, and June 30, 2022. No discount will be applied for shipments after July 1, 2022.

The export support is being disbursed through the National Bank of Egypt (NBE), Banque Misr, Banque du Caire, and the Export Development Bank of Egypt (EBank).