Egypt's minister of trade and industry, Ahmed Samir, says his ministry is working to ease restrictions placed on letter of credit (L/C) issuance to the country's exporters.

The move follows a presidential directive in May that ordered imports of production supplies and raw materials to be allowed once more on cash-against-documents terms (DC World News, 23 May 2022). Egypt had imposed new rules barring importers from using cash-against-documents terms and requiring most importers to use L/Cs earlier this year, despite fierce opposition from businesses (DC World News, 23 February 2022).

Facilitating exports

Egypt's policies concerning L/Cs in its efforts to preserve foreign exchange have been controversial, not least because they have been seen as curbing production of the country's manufacturing and agricultural exporters.

Samir says a set of measures are now being planned that will facilitate the issuance of L/Cs for imported raw materials and spare parts.

He also said the ministry is working on plans to make additional finance available from banks and to rehabilitate and create new industrial zones in line with international standards.

Export support

Meanwhile, Egypt's prime minister, Mostafa Madbouly, has said the state will extend its export subsidy initiatives for the industrial sector.

He said export subsidies had now amounted to the equivalent of US$1.7 billion and the cabinet has agreed to implement a new phase of subsidies of up to US$500,000 million.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.