Minister of Finance, Dr. Mohamed Maait, stressed that the government is moving ahead in implementing the President's directives for supporting the export sector

• “ Gov't's Instant and Cash Repayment Support to Export Companies" is the latest of 6 successful government initiatives.
• 1601 export companies joined the 2^nd Phase of “ Gov't's Instant and Cash Repayment Support to Export Companies"
• EGP 210.7 million disbursed by 43 export companies while other beneficiaries' arrears are scheduled on April 28 and June 17.

 

Minister of Finance, Dr. Mohamed Maait, stressed that the government is moving ahead in implementing the President's directives for supporting the export sector, as a pillar of national economy, especially in dealing with Corona crisis.  Significant effort is exerted to promptly disburse export companies’ arrears from EDF with regard to cargoes until the end of last June. This shall contribute to providing cash liquidity to enable export companies to fulfil their financial obligations to their customers and keep their labour force during the pandemic. Also, it will help in increasing productivity and  in boosting the competitiveness of Egyptian products in global markets.

Six successful initiatives were offered by the government to repay exporters’ arrears from the EDF. Most recently launched was the 2^nd phase of “ Gov't's Instant and Cash Repayment Support to Export Companies", which attracted 1601 export companies, with a repay acceleration discount of 15% during the period from 7 to 28 last February,  Dr. Maait noted.

By the end of last February, EGP 210.7 million was disbursed to 43 export companies that had joined the second phase of the said initiative. Arrears of the rest of export companies joining such phase are scheduled to be disbursed by next April 28 and June 17,  the minister pointed out. Moreover, he noted  that the success of the 1^st phase of this initiative encouraged the government to launch a 2nd phase based on similar frameworks and conditions, so as to include export companies’ dues from the EDF  for cargoes up to the end of June 2020.

Under six relevant initiatives, EGP 21.5 billion was disbursed by the government to support the export sector and exporters during a year. Most recent of which is the “Gov't's Instant and Cash Repayment Support to Export Companies" which had 1069 export companies being registered in its 1st phase, with all of them entirely receiving their arrears from EDF before 2021, he explained.

Furthermore, Dr. Maiit praised cooperation among the banking sector, Ministry of Trade and Industry, and Export Development Fund with regard to the “Instant Cash Repayment” Initiative; thus contributing substantially to the success achieved in one of the fastest implemented initiatives targeting the repayment of “exporters’ arrears” from EDF.

Advisor of the finance minister's deputy, Nevine Mansour, said that 2,500 export companies benefited from the previous five initiatives offered by the government to repay exporters’ arrears from EDF. Namely, EGP 5.6 billion was disbursed last FY and EGP 2.4 billion was disbursed as of last July 1^st  up to November 25^th , with total amounts of EGP 8 billion.

Such initiatives greatly contributed to providing  the necessary cash liquidity for export companies, in order to maintain production cycle, increase productivity, broaden exporting base, and boost competiveness of the Egyptian products in global markets, Mansour mentioned.

All export companies benefiting from the 1^st phase of "Instant cash repayment" initiative disbursed their whole arrears from EDF during last November and December, with a total of EGP 13.5 billion. This reflects the government's success in achieving the desired goals of this initiative that was greatly welcomed by exporters, she added .