Finance Ministry studies solutions for export subsidy arrears

CAIRO - 14 January 2018: Ministry of Finance studies a number of solutions to the arrears of delayed payment of export subsidy to exporters.

The minister said during a meeting with the Industry Committee of the House of Representatives on Monday that among these solutions is the possibility of clearing the receivables of exporters or providing other facilities, such as the possibility of working "credit" for exporters who donot pay taxes for these receivables.

"We must support our exports and encourage more Egyptian exports to strengthen the Egyptian pound, which is the lifeline," Ma'it added.

He pointed out that part of the problem is cumulative and the other part comes from the system itself, stressing his ministry's commitment to finance the export support fund by LE 4 billion, as provided in Egypt's budget.

According to the minister, President Abdel Fatah al Sisi directed the ministerial economic committee to provide solutions for the exports problem to avoid its recurrence.

Egypt's exports rose during 2018 by 11.6 percent on a year on year basis, recording $25 billion, compared to $22.4 billion during 2017.

Egypt has been witnessing a drop in imports after it floated its currency in late 2016, making Egyptian goods in foreign markets attractively cheaper while doubling the cost of importing.

The Central Bank of Egypt (CBE) previously stated that Egypt’s exports marked an increase of $1.2 billion during the third quarter of 2017/2018, hitting $6.75 billion, compared to $5.55 billion in the same quarter of 2016/2017.