Egypt releases $8.5 billion goods stuck at ports since December: Cabinet

CAIRO – 11 January 2023: Stuck goods worth $1.5 billion were released from Egyptian ports from 1 to 10 January, upping the total value of released goods since the start of December to $8.5 billion, the Cabinet said in a statement on Wednesday.

This includes more than $613 million worth of goods required for industrial purposes, including food products, primary industrial supplies, and spare parts, the statement said.

More than $40.7 million worth of corn, $28 million worth of soybean, and $56 million worth of pharmaceutical chemicals have been released over this period.

In December, the Egyptian Cabinet announced plans to release goods at the ports, especially food products, medicines, and production requirements, which have been stuck at ports for months due to shortage in foreign currency amid the global economic crisis.

This came shortly after the Central Bank of Egypt (CBE) announced canceling the letter of credit (LC) system as a requirement for imports.

The CBE’s February decision to oblige banks to deal with LCs was blamed for causing Egyptian ports to be full of stuck goods worth billions of dollars.

The CBE said in a statement that it decided to restore the documentary collections system for imported goods.

The decision to enforce the LCs system, effective since March, had required Egyptian banks to accept only LCs for imports in a bid to curb dollar outflows from the country.

On Tuesday, President Abdel Fattah al Sisi directed the government on Tuesday to swiftly continue releasing all goods stuck at the country's ports, as well as simplify all customs clearance procedures.