Egypt to Penalize Bakeries for Delayed Subsidized Bread Payments

The General Authority for Supply Commodities in Egypt will penalize bakeries that delay payments for bread production costs, imposing a 25% interest on debts and reducing quotas by the same amount. This decision is aimed at maintaining the integrity of the bread subsidy system, which supports about 70 million Egyptians.

The General Authority for Supply Commodities (GASC) in Egypt has declared intentions to impose penalties on subsidized bakeries utilizing natural gas that do not promptly settle their bread production cost differences. This announcement, made via a statement on Saturday, indicates that non-compliant bakeries will incur a penalty of 25% interest on any outstanding debts.

This penalty policy is aligned with a ministerial decision issued in August 2024. In addition to the interest charges, bakeries that fail to comply with the payment schedule will see a 25% reduction in their subsidized bread quotas. GASC has stressed the necessity of adhering to payment timelines to uphold the integrity of the subsidized bread program and safeguard the interests of all parties involved.

Furthermore, GASC has prepared and disseminated lists of bakeries that have not fulfilled their financial obligations to supply directorates across the nation. These directorates are responsible for enforcing the penalties as stipulated by the ministerial decision. GASC is urging bakeries to settle any overdue payments concerning bread production costs to avoid these financial repercussions.

Approximately two-thirds of Egyptian families, which translates to around 70 million citizens, benefit from the bread subsidy, highlighting the critical role of bread as a staple food within the country. GASC’s measures are intended to maintain a fair and efficient subsidization system for bread throughout Egypt.

In summary, the General Authority for Supply Commodities is implementing strict penalties for subsidized bakeries that fail to make timely payments for bread production costs. By mandating a 25% interest on overdue amounts and reducing bread quotas, GASC aims to ensure compliance within the system. Given that a significant portion of the population relies on this subsidy, the enforcement of these regulations is crucial for maintaining the integrity of Egypt’s bread supply.

Original Source: www.dailynewsegypt.com