$713 million is proceeds from the Egyptian Vehicles Abroad Initiative

Egypt launched the initiative in October last year, with the aim of boosting the country’s hard currency earnings, amid a major crisis related to the availability of the dollar, in light of economic pressures to which it was exposed due to the Russo-Ukrainian War, which has increased the cost of imported goods.

A few days ago, Fitch downgraded Egypt’s credit rating from “B+” to “B” by one notch, while converting its outlook to negative.

In a press release, the agency evokes the difficulties of external financing with regard to the financing needs of the country, and the hardening of the conditions of external financing.

Egypt remains short of foreign currency despite the Egyptian pound falling about 50% since March and its signing of a new $3 billion bailout with the International Monetary Fund in December.

And the Egyptian Minister of Finance said in a statement today that there are only 7 days left and the period decided to benefit and register for the initiative to “facilitate the import of cars from ‘Egyptians Abroad’ ends, and to pay the value of the prescribed deposit, stressing that there are no plans to extend the operation period of the initiative again after May 14.

More than 141,000 Egyptians residing abroad applied to benefit from this initiative, and 1,100 cars imported for Egyptians abroad, which benefited from the flexible checks established by law, were released, according to the statement.

The initiative allowed Egyptians working abroad to import a car for their personal use, without any customs or fees, provided that the value of customs duties and fees were deposited in the account of the Egyptian Ministry of Finance in dollars, provided that the depositors recovered this value after 5 years of Egyptian Pounds, at the exchange rate of the dollar on the date of recovery at the end of the year.

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