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Tuesday, 10 December 2019

Egypt’s Export Subsidy Fund to pay 40% of total overdue subsidies before mid 2020

The Export Subsidy Fund plans to disburse 40% of total overdue subsidies before mid-2020, head of the Textile Export Council Magdy Tolba said, according to Al Mal. A total of 370 companies are currently owed export subsidies. The fund signed nine agreements last week to settle EGP 1.4 bn-worth of overdue subsidies, according to Vice Minister of Finance Ahmed Kouchouk.

Background: Exporters are owed bns of overdue subsidies under the old subsidies framework. Settlements of the overdue payments have reportedly been moving forward since last September, in tandem with the launch of a new EGP 6 bn framework the Madbouly government had approved in June. The executive regulations for the new program were out last week and prompted backlash from industry, which had objections to the mechanism through which the annual allocations would be paid out. Exporters are also concerned about how the fund plans to settle away bns in back due subsidies. Export councils were reportedly due to sit down yesterday with Export Subsidy Fund boss Amany El Wassal to discuss the fine points of implementing the framework.

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