EGP 5 bln disbursed for 360 exporters under Immediate Cash Payment initiative 7th phase

Ahram Online , Tuesday 11 Jun 2024

360 export companies have received their overdue receivables under the seventh phase of the Immediate Cash Payment initiative, amounting to EGP 5 billion, Minister of Finance Mohamed Maait stated on Tuesday.

Suez port
File photo: Containers being moved to a cargo ship in the Suez port. Photo courtesy of State information service.

 

The companies which submitted their documents have received the overdue amounts owed up to 30 June 2023.

The payments are being made before the end of June and in installments until August.

"Since the inception of the initiatives to settle overdue receivables at the Export Development Fund in October 2019, the total disbursement over the past four years has reached EGP 60 billion," Maait said.

He emphasized that the government is keen on providing the necessary funding for programmes that stimulate economic activity, particularly supporting the industrial sector, export activities, and other initiatives, in the budget for the upcoming FY2024/2025, totaling EGP 40.5 billion.

This includes EGP 23 billion dedicated to the initiative.

Financial settlements or offsets will be made between the Export Support receivables and the state's dues from taxes, customs, electricity, and natural gas, Advisor to the Deputy Minister for Financial Policies and Institutional Development Nevine Mansour pointed out.

She also highlighted that the fruitful cooperation with the banking sector, the Ministry of Trade and Industry, and the Export Development Fund has been instrumental in the success of the Immediate Cash Payment initiative in its six phases, and a driving force to continue supporting exports in the seventh phase.

The regulations of the initiative's previous phases are also applied to the seventh phase, which includes a 15 percent discount rate for expedited payments up to shipments dated 30 June 2021 and an eight percent discount rate for shipments from 1 July 2021 to 30 June 2022, with no discount rate applied for shipments from 1 July 2022.

The Export Support payments through the Immediate Cash Payment initiative are disbursed by the National Bank of Egypt, Banque Misr, Banque du Caire, and the Export Development Bank of Egypt.

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