LE16.4B disbursed in 2 phases of "immediate payment to exporters" initiative: FinMin.

CAIRO – 77 July 2021: More than 2,000 exporting companies spent approximately LE 16.4 billion during the previous two phases of the "immediate cash payment" initiative, Mohamed Maait, Minister of Finance, said Sunday.

The minister indicated in a statement, that since the beginning of the implementation of the initiatives to return the “arrears” of the dues of the exporting companies in October 2019 so far, the exporting companies have been supported with LE 28 billion; It is a support that was not previously allocated to the export sector, reflecting the state's keenness to stimulate exports.

He stressed that the third phase of the instant cash payment initiative has received a remarkable turnout from exporters since the door was opened to receive applications last Sunday, as we received requests from about 600 exporting companies wishing to benefit from the initiative.

The minister said that the state continues to receive applications from companies wishing to join the third phase of this initiative in the ministry until July 29, 2021, with the same conditions as the previous two phases, provided that the disbursement will take place at the end of next September until the end of October 2021 with a 15 percent payment discount.

Maait pointed out that the third phase of the immediate cash payment initiative is a continuation of the successes that have achieved in the first two phases that were implemented from November to December 2020, and the second phase from February to June 2021.

The minister added that the third phase of this initiative is being implemented in cooperation with the banking sector to provide these overdue dues to exporting companies wishing to obtain them immediately at 85 percent, and then the Ministry of Finance will pay the total of these amounts and their interests over three years to the banks participating in this initiative.

He explained that joining this initiative and agreeing to the discount is at the will of the exporting companies, which consider that this is in line with their financial and organizational plans.

The minister indicated that this contributes to providing cash liquidity that enables them to fulfill their obligations towards their customers and preserve employment in light of the repercussions of the coronavirus pandemic; In implementation of the directives of the political leadership to provide a helping hand to the exporting companies and quickly respond to the export burdens to support the industrial and export sectors; In a manner that ensures maximizing the state's production capabilities, enhancing the competitiveness of Egyptian products in global markets, advancing the national economy, raising growth rates, and attracting new investments to achieve comprehensive and sustainable development in various sectors.

Nevin Mansour, advisor to the Deputy Minister of Finance, said that the five previous initiatives put forward by the government to pay the overdue amounts to support exporters with the Export Development Fund benefited 2,500 exporting companies.

She pointed out that these initiatives effectively contributed to providing the necessary cash flow to the exporting companies to ensure the continuation of the production cycle.

She explained that the fruitful cooperation with the banking sector, the Ministry of Commerce and Industry and the Export Development Fund in the first and second phases of the "immediate cash payment" initiative, contributed to the success of one of the fastest initiatives implemented to return the "overdue amounts to support exporters" at the Export Development Fund to the exporting companies.