2 days ago
Egypt to pay half of exporters' arrears in August, EGP 25 bln allocated - Economy
Egypt's government will begin repaying overdue debts to exporters in August, starting with a cash payout covering half of what is owed for shipments made before the end of June 2024.
The Ministry of Finance announced on Monday that around EGP 25 billion will be disbursed to approximately 2,400 companies, with the first instalment scheduled for 7 August. Payments will be made through four participating banks: the National Bank of Egypt, Banque Misr, Banque du Caire, and the Export Development Bank of Egypt.
The funds are part of a broader payment plan under the FY2025/26 budget, which allocates EGP 44.5 billion out of a total of EGP 78.1 billion set aside for supporting exports and industry—to clear arrears.
Finance Minister Ahmed Kouchouk said the move aims to provide exporters with urgently needed liquidity. 'We are committed to providing the liquidity exporters need to sustain and expand their production and export activities,' he said, framing the initiative as part of the government's push for private-sector-led growth.
The remaining 50 percent of the arrears will be settled through a clearing mechanism, allowing companies to offset what the state owes them against debts they owe to government bodies, including the tax and customs authorities, the Social Insurance Authority, and utility providers such as electricity and gas companies.
Nevin Mansour, advisor to the finance minister, stated that the dual-track system of partial cash payments and clearing will alleviate pressure on exporters while also enhancing fiscal coordination across public agencies. She noted that the government has already paid more than EGP 70 billion to 2,800 exporters since 2019 through earlier support programmes.
The decision comes as Egypt faces ongoing economic headwinds and negotiations with the International Monetary Fund (IMF), with the government under pressure to contain spending while encouraging foreign currency inflows.
Officials say the arrears settlement should help boost exports and ease balance of payments constraints, though delays in previous programmes have left some exporters cautious about the timeline.
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