The Ministry of Finance will cash approximately EGP 3 billion on Thursday 18 July as part of the government’s support to exporters who benefit from the seventh round of the Immediate Cash Payment initiative.
Therefore, the ministry said in an official statement that the total money dispensed in this stage will exceed EGP 11 billion.
Minister of Finance Ahmed Kouchouk also said the ministry will continue to dispense new payments for the beneficiaries of the seventh round of this initiative in August, which will help increase liquidity for the export sector amid economic challenges.
He added that this would assist the country in accomplishing its goals regarding pushing forward export stimulation efforts, increasing its growth by 15 percent annually, and strengthening Egyptian products’ competitiveness in global markets.
‘We are keen on providing the necessary financing on a sustainable basis, decreasing to a large extent the time needed to pay dues for economic activity, incentivizing programmes especially
for production and export support to contribute effectively in executing a strategy for increasing Egyptian exports to reach high levels, following what is stated in the government’s plan,’ Kouchouk Stated.
He also explained that the ministry allocated EGP 23 billion in the current fiscal year’s state budget for promoting exports and incentivizing investors to expand their exporting activities.
Additionally, he noted that the total value of the government’s support since the commencement of paying the late dues at the export development fund initiatives in October 2019 has reached EGP 65 billion for exporters.
The seventh round of the Immediate Cash Payment initiative to support exporters has witnessed a noticeable turnout from private exporting companies, especially since the same previous controls are being implemented, Advisor to Vice Minister for Fiscal Policies and Institutional Development Nevine Mansour stated.
This included applying a discount on the accelerated payment rate by 15 percent on shipm
ents until 30 June 2021 and a discount of eight percent on shipments from 1 July 2021 until 30 June 2022. However, no discount rates will be applied from 1 July 2022.
She added that a financial settlement or clearing would be executed on the ‘exporters’ support’ dues and the governmental entities’ dues such as taxes, customs, electricity, and natural gas.
Moreover, Mansour stated that the cashing of the export support through the Instant Cash Payment initiative is being made through the National Bank of Egypt, Banque Misr, Banque du Caire, and the Export Development Bank of Egypt.
Egypt plans to increase its annual exports to $130 billion, according to the government’s programme for the coming three years announced last week.
Source: State Information Service Egypt
