Ministry Of Finance To Disburse EGP 5Bn In Export Subsidy Dues To 360 Companies
Date
6/5/2024 11:13:41 PM
(MENAFN- Daily News Egypt) Mohamed Maait, the Minister of Finance, announced that a new batch of export subsidies will be disbursed on Thursday. These subsidies aim to help companies address both external and internal challenges by injecting additional liquidity, thereby enhancing their production and export capabilities.
Since the inception of the lump-sum export subsidy dues payment initiative by the Export Development Fund in October 2019, the government has provided approximately EGP 55bn in support to exporting companies. With the completion of the seventh phase of the initiative, this support is expected to reach EGP 70bn.
Starting Thursday, 360 exporting companies eligible for the seventh phase will receive EGP 5bn. The disbursement will occur in subsequent installments on 27 June and 8 August, with an estimated total value of EGP 10bn.
To ensure transparency, financial adjustments will be made between exporters' support dues and state authorities' obligations related to taxes, customs, electricity, and natural gas. The government remains committed to funding programs that stimulate economic activity, particularly supporting the industrial sector and export activities in the next fiscal year's budget. The allocated funding amounts to EGP 40.5bn, including EGP 23bn for continued rapid recovery of export burdens.
Nevine Mansour, Advisor to the Deputy Minister of Finance for Financial Policies and Institutional Development, highlighted the successful cooperation with the banking sector, the Ministry of Trade and Industry, and the Export Development Fund during the first six stages of the immediate cash payment initiative to support exporters. The seventh phase has seen a remarkable response from exporting companies.
Mansour clarified that the seventh phase adheres to the same previous controls. Discounts on accelerated payment rates include 15% until shipments of 30 June 2021, and 8% for shipments from 1 July 2021 to 30 June 2022. No discount percentage will apply to shipments from 1 July 2022, onward.
Export support is disbursed through the initiative of the National Bank of Egypt (NBE), Banque Misr, Banque du Caire, and the Egyptian Export Development Bank.
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