Egypt to pay 2nd tranche of export arrears to 9 firms by July

Egypt’s government plans in July to disburse 20 percent as a second payment of its arrears to nine local companies, a move made under the state export subsidy programme.

The country made the first payment in late December, informed government sources told Amwal Al Ghad on Wednesday.

“These are the companies that have submitted so far their papers to the government requesting the disbursal of their dues in exchange for carrying out new expansions and injecting investments into the local market,” the sources said.

They include Oriental Weavers Company, which received 100 million Egyptian pounds ($6.2 million) by late December, out of total arrears amounting to 500 million pounds, they said.

The list also includes four companies operating in the textile and garment industries sector, they added.

Unilever Mashreq, Schneider Electric, Fresh Electric for Home Appliances, and El Mohandes Jotun, are among the list of companies to receive the second payment, according to the sources.

The export subsidy programme is a mandate of Egypt’s Export Development Fund (EDF), aimed at providing an incentive package for local companies to push for more exports. The programme will work to fund financial incentives for exporters, improve export infrastructure, and settle financial obligations, including taxes.

The government will complete paying off a total amount of arrears of 25 billion pounds within four years.