Egypt announces new mechanism to settle $1.18bln in exporters’ dues

PHOTO

The Egyptian government has developed a new mechanism to pay off the remaining overdue dues to exporters by the Export Development Fund for shipments until June 30th, 2024, with a total value of nearly EGP 60 billion, according to an official statement.

Minister of Finance Ahmed Kouchouk and Minister of Investment and Foreign Trade Hassan El-Khatib highlighted that the mechanism aims at disbursing 50% of the dues in cash over four consecutive fiscal years starting from FY 2024/2025 with a value of up to EGP 8 billion annually.

The ministers said this fiscal year marks the first time the state pays exporters' dues within the same year, targeting settling the first installment to exporters in January.

They also confirmed settling 50% of exporters' arrears through the clearing system with their old and future debts to the tax and customs authorities as well as the state’s electricity and gas companies.

The government also paid EGP 70 billion in arrears owed to more than 2,800 exporting companies during the period from 2019 to 2024, Kouchouk and El-Khatib said.

Moreover, they added that the two ministries are planning for a new program to assist exporters starting FY 2025/2026.

This program is set to push revenues and exports up and scale up the added value to Egyptian exports, the ministers explained.