Egypt’s Minister of Finance Mohamed Maait has revealed that the initiative providing immediate cash payment of late dues to exporters, set up with the Export Development Fund, has experienced increasing demand.
“Since the beginning of November, the Ministry [of Finance] has received requests from 650 companies wishing to benefit from this initiative,” Maait said, “It allows the immediate payment of dues by discounting an accelerated payment of 15% of the total value, instead of paying them in instalments over four or five years.”
He added, “This contributes to providing cash liquidity that enables companies in the export sector to fulfil their obligations towards their customers, and to preserve employment in light of the novel coronavirus (COVID-19) pandemic.”
Maait said that his ministry and the Export Development Fund would continue receiving requests from exporters wishing to benefit from this initiative. Exporters will be able to access the initiative on weekdays between 8:30am and 6:00pm, until the end of the working day on 30 November.
He added that companies that have already applied to join the initiative, and who have completed all the required documentation, may apply to one of the banks participating in the initiative. They will then be able to access their financial dues from 30 November until the end of December.
Banks will finance the immediate payment of late dues to exporting companies wishing to obtain them at a rate of 85%. Maait added that the public treasury is to pay the total of these sums and their interest over three years to the banks.
