Egypt’s government will be launching an initiative that allows instant and cash repayment of exporters’ subsidies arrears from the Export Development Fund (EDF) before the end of 2020 at a discount of 15 percent, Minister of Finance Mohamed Maait announced.
Maait pointed out that the initiative supports domestic and foreign companies operating in the Egyptian market.
“The initiative will be implemented in collaboration with the banking system, as the finance ministry will deposit a guarantee at the Central Bank of Egypt (CBE) to allow for the payment of the arrears through the end of September for export companies that are willing to pay their entire dues, but with a repay acceleration discount of 15 percent,” according to Maait.
He added that the finance ministry will repay these sums and their proceeds to the banks that contributed to the initiative over three years
The initiative aims at providing cash liquidity to enable exporters to fulfil their obligations and keep their labour force amid the ongoing COVID-19 crisis, said Maait.
Maait added that the initiative will boost the national economy, increase growth rates, attract new investments, and maximise public revenues.