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Egypt provides EGP 21bn to support exporters during 2020: Finance Minister 1,069 companies benefit from lump-sum payment initiative to settle export subsidy dues before 2021, says Minister Maait
The Egyptian government has disbursed more than EGP 21bn in 12 months through six initiatives to support the country's exporters. The most recent of these initiatives was the lump-sum payment initiative to settle export subsidy dues of companies with the Export Development Fund (EDF). Under this initiative, exporters can receive their subsidy dues in full, instead of several instalments over four or five years, before the end of 2020, provided that a 15% of the sum will be cut. Finance Minister Mohamed Maait said that 1,069 exporting companies have joined the initiative, with all of them having received their overdue dues, worth a total of EGP 13bn, before 2021. The minister added that the initiative contributes to providing cash liquidity that enables export sector companies to fulfil their obligations to customers. It also aims to ensure that no employees are laid off as a result of the economic hit caused by the novel coronavirus (COVID-19) pandemic. At the same time, the initiative provides the support needed for companies to increase their production capacities, expand their export base, and enhance the competitiveness of Egyptian products in global markets. The minister further said that 2,500 exporting companies benefited from the other five initiatives put forward by the government in 2020 to pay export subsidy dues. Accordingly, the government has disbursed EGP 5.6bn in fiscal year (FY) 2019/20, in addition to EGP 2.4bn in the period from 1 July to 25 November 2020. A total amount worth approximately EGP 8bn has been provided to support exporters. Maait said that 2,351 exporting companies benefited from two initiatives, and have paid 30% of the payments owed to exporters. A further 153 exporting companies have also benefited from the investment initiative to disburse the first tranche of export subsidies with the EDF, totalling EGP 1.8bn. There are a large number of exporting companies that have benefited from more than one initiative, the minister said.
