Minister of Finance Mohamed Maait has revealed that EGP 2 billion were disbursed from the Exports Development Fund (EDF) in April and May to cover exporter arrears, bringing total disbursements to EGP 5.2 billion from July 2019 until the end of May 2020.
Maait added in a statement issued Wednesday that the action came in implementation of President Abdel-Fattah El-Sisi's directives in this regard.
He also said that EGP 1 billion is expected to be disbursed in June, through which cash liquidity be available for export firms amid the Covid-19 crisis to be a pumped into the production process, in addition to keeping workforces in employment.
The ministry will continue providing monthly sums for the EDF in order to meet five initiatives approved by the cabinet, including paying 30 percent of exporters arrears at the minimum of EGP 5 million for each exporter and deferrals with the Tax Authority, adding that the presidential instructions aims to bolster the production and exporting sectors amid the coronavirus crisis.
He added that exporters can get their arrears without submitting tax statements through the end of the crisis under facilities that the ministry extended to the vital exports sector.
In May, Egypt's ministers of finance and trade and industry inked a number of settlement agreements with 41 foreign and domestic export firms to resolve the arrears meant to be disbursed to them through the EDF amid the Covid-19 crisis. The agreements are also meant to enhance the competitiveness of Egypt’s products globally, and expand the exporting base by heading to international markets, according to Maait.
Minister of Trade and Industry Nevine Gamea said that electronic payment orders are to be issued for 2,056 export firms, worth a total of EGP 1,900 billion, in implementation of President El-Sisi's directives to fast-track the disbursal of export firms’ arrears despite the challenges the Covid-19 crisis imposes.
Gamea added that the total arrears that have been disbursed from the EDF for export firms as of January until the end of April recorded EGP 2,133 billion.
The trade and industry ministry also inked in May exports support contracts with 20 export firms with a total value of EGP 3 billion to expand their investments.
Export firms have been suffering from the accumulation of their dues that have not been disbursed from the EDF for three years, reaching a total of EGP 10 billion.