On Wednesday, Minister of Finance, Mohamed Maait, stated that EGP 7.5 billion were paid in export subsidies to 750 companies as part of the first batch of the sixth phase of the immediate cash export payment initiative. 

The beneficiary companies have followed the procedure of submitting the required documents during the first weeks of May. 

The minister added that the distribution of the second batch will take place on 19-20 July, while the third batch will be on 2-3 August. 

Advisor to the Deputy Minister of Finance for Financial Policies and Institutional Development, Nevine Mansour, explained that the disbursement of the dues will take place through the National Bank of Egypt, Banque du Caire, and Export Development Bank. 

The initiative was first launched as part of the Export Development Fund by the Ministries of Trade and Finance in partnership with several banks. It aims to allow the payment of 85% of total value immediately instead of several installments, to improve cash liquidity and allow exporting companies to fulfill their requirements. 

Mansour stated that more than EGP 42.5 billion were already paid to exporting companies, through Export Development Fund, since the initiation of the initiative. Mansour also noted that the cash export initiative focuses on providing cash liquidity and supporting export companies to expand their production and exports. 

According to CAPMAS earlier this month, exports dropped 44.9%, which is most likely attributed to a decrease in natural and liquid gas exports, while the trade deficit dropped by 49% in March.