The Clap
El Shahat Ghatoury, Head of the Customs Authority, said that it is possible that new decisions from the CBE to solve the import crisis will be made within days.
The Deets
Ghatoury said the CBE may allow importers to use letters of guarantee in return for the shipments accumulated in the port to be released, until they are able to obtain documentary credits.
Letters of Guarantee
A letter of guarantee is a document stating that the bank entrusted by the importer is obligated to pay the import value to the specified party, no matter what happens.
Why this Matters
The procedures required to obtain documentary credits are complicated, because the process involves communication between the importer’s bank and the exporter’s bank, which leads to delays in importers receiving their goods.
The government is trying to help importers and facilitate importation, after it had made the matter difficult in order to protect its dollar balance, which is utilized for imports.
