Export Subsidy Fund begins paying out EGP 1 bn in arrears
Export Subsidy Fund begins paying out EGP 1 bn in arrears: The state-run Export Subsidy Fund on Tuesday began dispensing EGP 1-1.2 bn in overdue export subsidies, 10% of which will be doled out in cash payments, unnamed sources told the local press. The sources said 37 exporters requested that they receive EGP 600 mn in the form of capital investment, EGP 250 mn of which has already been paid out.
Background: Exporters are owed bns of overdue subsidies under the old subsidies framework, which has been moving forward since last September with the launch of a new EGP 6 bn framework, which includes some EGP 2.4 bn to be doled out as cash payments, EGP 1.8 bn as tax breaks and cuts, and EGP 1.8 bn (30%) will be spent by fund. Companies that are owed arrears less than EGP 5 mn — around 60-70% of the companies — can receive the entire amount in cash. Some EGP 790 mn in overdue subsidies has been paid to 75 companies so far and agreements have been signed with 67 other large companies that will see EGP 6 bn paid out over the coming five years as long as they commit to new investments.