The Egyptian government intervenes with urgent measures to resolve the shortage crisis auto

The Prime Minister of Egypt, Mostafa Madbouly, directed the necessary coordination between the relevant ministries and the banking sector in order to put in a mechanism for the orderly release of shipments of auto coming from abroad in the next period.

The Egyptian Prime Minister’s directives came during a meeting with representatives of automakers, major banks and others, to discuss ways to address supply restrictions imposed on the sector, after the new import rules created major challenges for companies. car dealerships for the transport of shipments through ports.

Madbouly said, “The state is eager to balance the urgent need to meet basic needs, from food and petroleum materials from abroad, and between keeping the market moving and facilitating the work of various companies, including car companies and agents, despite the difficulties and unfavorable global economic conditions “.

During the meeting, the Minister of Commerce and Industry of the Egyptian government, Nevin Gamea, revealed that in the last period new measures have been taken to speed up the release of the auto imported.

On the other hand, the representatives of the car manufacturers thanked the government, the Central Bank and the banking sector for their efforts to facilitate their activities and stressed their understanding of the “exceptional circumstances that the world is experiencing and that this situation it is temporary and imposed by unprecedented current events “.

And some foreign automakers have stopped their exports in the last month in Egypt due to the import controls announced by the government to address the global crisis, which prevented local dealers from buying cars.

And there were about 29,000 auto blocked in ports in waiting for customs clearance.

This followed the imposition of new import rules in March, which oblige importers to use documentary credits to import goods, rather than established collection documents. in precedence.

Interestingly, passenger car sales fell for the second consecutive month during last April, down 20% from the same month last year, according to data from the Egyptian Automotive Market Information Council (AMIC), which covers the sales of a group of companies on the market.

The decline was driven by import restrictions, high inflation, component shortages and the depreciation of the pound against the dollar following the extraordinary meeting of the Monetary Policy Committee of the Egyptian Central Bank on March 19, when it was decided to increase interest rates and reduce the value of the Egyptian currency against the US dollar.

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