Paying export arrears: Egypt’s govt aims to boost sector

The Ministry of Finance has launched an initiative to pay export-subsidy arrears from the Export Development Fund before the end of the year, helping to provide exporters with the liquidity they need to keep their labour force amid the coronavirus pandemic and encourage them to expand their investments.

According to the initiative, exporters will not receive the full sum owed to them, but instead will receive 85 per cent of their arrears in cash immediately. Those wishing to receive the whole sum can receive it in installments over four or five years. The government owes exporters some LE12 billion in export subsidies.

A representative from the Finance Ministry met on Monday with the directors of Egypt’s export councils to lay the groundwork for the disbursement plan, which should begin in early November, Hani Berzi, chairman of the Food Export Council, said.

Many companies had welcomed the initiative, preferring to accept 85 per cent of their arrears in cash in order to expand their businesses instead of waiting to receive the whole sum, he added.