Egypt's Finance Minister Ahmed Kouchouk and Investment Minister Hassan El-Khatib announced on Wednesday that the government has paid off 70 billion Egyptian pounds in overdue payments to over 2,800 exporting companies from 2019 to 2024. The announcement came during a press briefing held by Prime Minister Moustafa Madbouly, following the Cabinet's weekly meeting. The ministers revealed an innovative new mechanism to settle the remaining overdue payments for shipments made up until June 30, 2024, totaling approximately 60 billion pounds. This plan is part of Egypt's broader efforts to implement financial policies that stimulate domestic production and enhance the competitiveness of Egyptian exports globally. In a joint statement, the ministers highlighted that 50 per cent of the arrears will be paid out in cash over the next four years, beginning this fiscal year, with 8 billion pounds disbursed annually. For the first time, the government will also settle payments for the current year, 2024/2025, within the same year, with the first installment expected later this month. To further ease the burden on exporters, 50 per cent of the overdue amounts will be cleared through a reciprocal settlement process, offsetting exporters' past and future liabilities with taxes, customs duties, and utility companies such as electricity and gas. Looking ahead, Minister Kouchouk and Minister El-Khatib emphasised that the two ministries are jointly working on a new and ambitious programme to support exporters starting in the 2025/2026 fiscal year. This initiative is aimed at boosting export revenues, increasing the volume of exports, and enhancing the added value of Egyptian products in global markets. Both ministers reassured the public that the two ministries are working seamlessly together in a coordinated effort to achieve the government's economic goals and boost Egypt's export sector. Attribution: Amwal Al Ghad English
