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Wednesday, 27 February 2019

Trade & Industry Ministry agrees to pay EGP 7.8 bn of export subsidies

Trade Ministry reportedly agrees to pay export subsidies worth EGP 7.8 bn: The Trade and Industry Ministry will pay EGP 7.8 bn worth of overdue export subsidies to exporters, ministerial adviser Hossam Farid was quoted as saying by Hapi. His statement came during a meeting between ministry officials and the Egyptian Businessmen’s Association (EBA) to discuss the new export incentives program that on which the ministry has been working. The new program will focus on incentives to grow value-added exports as well as to push industry to Upper Egypt and to develop shipping and logistics operations. The strategy should be in final form for cabinet review soon.

Background: Exporters have ratcheted up the pressure to get the government to pay out what they say are bn’s in overdue subsidies. The government, which is trying to boost exports and reduce imports to plug its trade deficit and save foreign currency, said it will decide on its next payment in March and has hinted that the new incentive program might be a non-cash one.

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