Minister of Finance, Dr. Mohamed Maait, announced that the second phase of “Government’s instant and cash repayment support to export companies” through EDF will be launched, offering a 15% acceleration discount.

 

 

• Registration applications of export companies joining the initiative will be open as of 7 February up to 28 of the same month.
• Arrears due to export companies subscribing to the second phase of the government’s initiative of “export companies support” are scheduled to be paid in three dates: before end of February, April and June.
• The government disbursed EGP 21.5 billion over one fiscal year in support of the export sector and its stakeholders.
• All exporters benefiting from the initiative’s first phase got reimbursed before the beginning of 2021
• 1069 export companies disbursed their arrears from the Export Development Fund (EDF) last November and December, with total disbursements of more than EGP 13.5 billion.
• EGP 8 billion are disbursed by the “Gov’t support to export companies” initiative thanks to 5 previous initiatives…from last October 2019 to November 2020.

 

Minister of Finance, Dr. Mohamed Maait, announced that the second phase of “Government’s instant and cash repayment support to export companies” through EDF will be launched, offering a 15% acceleration discount.

 

Approved by the Cabinet, Dr. Maait said that this initiative is launched in implementation of the presidential directives to support the exporting sector and to accelerate paying export companies’ arrears before the end of the current FY 2020/21, payable by EDF for shipments dated as to last June.

 

Such procedures aim to provide export companies with liquidity so as to enable them to meet their obligations and maintain the work force amid the outbreak of COVID 19. This shall also help in increasing productivity and boosting competitiveness of the Egyptian products in international markets, stressed Dr. Maait.  Registration in the initiative’s second phase shall be open daily as from 7 to 28 February, from 9 a.m.  to 7 p.m., except for Fridays and Saturdays, at the premises of the Ministry of Finance, Dr. Maait added.

 

The success of the first phase of the initiative prompted the government to launch the second phase in the same framework and conditions, noted Dr. Maait. Namely, the initiative shall cover arrears of export companies, payable by EDF for shipments dated until end of June 2020, provided that all required documents be submitted to the fund before 28 February. Payments of export companies registering in the initiative’s second phase shall be disbursed with a 15% acceleration discount in three dates: before the end of next February, April and June.

 

Dr. Maait added that companies which benefited from the first phase of such initiative and still have arrears, those which haven’t dispensed their payments yet, or even companies not subscribing in the initiative may register in the second phase, underlining the success of the initiative’s first phase in luring many exporters.

 

Thanks to launching 6 same initiatives, the government disbursed EGP 21.5 billion over one fiscal year to back the export sector, said the minister, pointing out that the “Government’s instant and cash repayment support to export companies” is the latest initiative, offering a 15% acceleration discount. 1069 export companies joined the first phase, whereby all of them received all their due arrears from EDF before the beginning of 2021.

 

Dr. Maait reiterated that all joining companies disbursed all their export support arrears from the fund during last November and December, with a total value of EGP 13.5 billion, stressing the government’s success in achieving the objectives of the initiative that was greatly welcomed by exporters.

 

As many as 2500 exporting companies took advantage of the previous five governmental initiatives for arrears payments by the EDF, said Dr. Maait. Over the last fiscal year, EGP 5.6 billion were disbursed along with EGP 2.4 billion from 1^st of July to last November 25, with a total value of EGP 8 billion.  These types of initiatives had a great role in providing export companies with liquidity, which in turn boosts their productivity, expands their exporting base and strengthens the competitiveness of the Egyptian products in international markets, he added.  

 

Dr. Maait hailed the cooperation of the banking sector, Ministry of Trade and Industry and EDF in the first phase of the said initiative. Thanks to their efforts, the same is considered one of the fastest initiatives to be accomplished, extending nearly for two months since the first opening day of receiving applications till the last day of disbursement.

 

2351 export companies benefited from “small exporters” initiative, and the initiative that encourages paying 30% of due payments, noted the minister. Moreover, 337 exporting companies executed a clearance to set off    export support amounts and payable tax and custom liabilities, with a value of EGP 1.2 billion. 153 export companies enrolled in the investment initiative, by disbursing the first package of amounts allocated to export support from EDF, with a total value of EGP 1.8 billion, illustrated Dr. Maaiit, noting that many companies joined more than one initiative.