Egypt disburses LE 33B to more than 2,500 exporting companies through immediate cash payment

CAIRO - 17 April 2022:  Ministry of Finance disbursed LE 33 billion to more than 2,500 exporting companies through immediate cash payment, according to the Finance Minister Mohamed Maait.

 

Maait affirmed in a statement, Sunday, that the government will continue boosting the exports sector despite global economic challenges that disrupted world supply chains and caused an unprecedented price hike and skyrocketing shipping costs.

 

The  immediate cash payment initiative aims at providing cash liquidity needed for exporting companies to fulfill their obligations towards their clients and keep employment by allowing the payment of up to 85 percent of the total value of exporters' dues rather than paying them in installments.

 

 

The minister noted that the initiative came into force in October 2019 and is still going on till now, adding that the last batch of the fourth stage of exporters, that was launched mid November, will get their dues by April 28, he added.

 

Under the initiative, the Ministry of Finance will pay the total of these amounts and their interests over three years to the banks participating in this initiative.

 

The minister noted that the initiative aims to motivate exporters to maximize their export activities in a way that contributes to reaching the annual export volume to $100 billion.

 

“It was decided to implement the “immediate cash payment” initiative for export shipments from July 1, 2021, with a discount rate of 8 percent acceleration, instead of the 15 percent that was in force, on shipments until June 30, 2021.