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Thursday, 30 January 2020

Madbouly directs officials to speed up overdue payments for Egyptian exporters

Madbouly directs officials to speed up overdue export subsidy payments: Larger exporters will receive an additional 10% of their outstanding export subsidy dues and smaller companies owed less than EGP 5 mn will get their dues paid in full, under a decision taken yesterday by Prime Minister Moustafa Madbouly. The prime minister also directed the Finance Ministry to start next month paying out export subsidies under the new framework.

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 government had approved in June.

The government has so far settled overdue subsidies worth EGP 790 mn for 75 companies, according to the statement yesterday. Agreements with 67 other companies were also signed to settle another EGP 6 bn over the coming five years. These larger companies will commit to investments and expansions in exchange for the government speeding up their payments.

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