Four banks will participate in the sixth phase of the lump-sum export subsidy payment initiative, which was approved by the Cabinet last week.
The four banks are the National Bank of Egypt (NBE), Banque Misr, Banque du Caire, and the Export Development Bank of Egypt (EBank).
The launch of this phase comes within the framework of the state’s efforts to complete the payment of export subsidy dues, to encourage companies to increase their exports. Mohamed Maait, Minister of Finance, said that the cabinet agreed to launch the sixth phase of the initiative at a value of EGP 10bn.
Maait explained that the sixth phase of the initiative aims to cover exports until 31 December 2022, with the same previous controls. The rate of acceleration of payment is deducted by 15% until shipments 30 June 2021, and 8% for shipments from 1 July 2021 to 30 June 2022, and not to apply any discount rate for shipments from 1 July 2022 onwards.
He pointed out that the same export support rules for the fiscal year 2021/2022 will be applied to export support dues for the fiscal year 2022/2023. He also explained that the requests of exporting companies that have already completed their documents will be received during the period from May 7 to May 11 to join the sixth phase of the initiative, and receive requests from other companies whose documents are being completed during the period from 17 to 31 May.
He explained that three periods have been set to pay the dues of exporting companies benefiting from the sixth phase of the initiative, so that the first period will be paid on July 5 and 6 for companies that have already completed their documents and submitted their applications during the period from 7 to 11 May, and the second period will be paid on 19 and 20 July. The next payment will be made for companies whose documents are being completed and applications have been submitted in the period from 17 to 31 May. The third period will be disbursed on 2 and 3 August for companies whose documents are being completed and applications submitted in the period from 17 to 31 May.
Nevin Mansour, Advisor to the Deputy Minister for Financial Policies and Institutional Development, said that the fruitful cooperation with the banking sector, the Ministry of Commerce and Industry and the Export Development Fund had a great impact on the success of the initiative in its five phases, and motivated the completion of the export support process in the sixth phase.
She indicated that more than EGP 42bn have been disbursed to exporting companies, since the start of initiatives to pay late dues to exporters with the Export Development Fund in October 2019 until now.