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Human Services

Iran has no limitation to guarantee exports contracts

Tehran, Despite all currency problems and also crippling sanctions imposed on Iran, Export Guarantee Fund of Iran has no limitations to guarantee exports contracts.

Speaking in an interview with the Islamic Republic News Agency (IRNA) on the sidelines of the 24th Iran International Electronic, Computer and E-Commerce Exhibition which is underway in Tehran, Head of Exports Guarantee Fund of Iran for public relations affairs Sekhavat Moradi said the organization is a unique supporting organization and the body has allocated small commission for exports, he said.

He also expressed readiness for supporting exporters, he said.

While referring to current critical conditions in Iran, Moradi urged exporters not to export without insurance coverage.

He underlined that basically there are two kinds of risks which are political and trade ones.

'A country may be involved in war, revolutionary or bankruptcy,' he said while reiterating that the Export Guarantee Fund of Iran will cover the insurance under any condition.

'The organization is maintaining cooperation with Germany, Italy, Commonwealth of Independent States (CIS), UAE, China, Korea, Iraq, Afghanistan and African states,' Moradi noted.

As the only insurance body of the Industry, Mine and Trade Ministry, Export Guarantee Fund of Iran is responsible for insuring industrial contracts and financing industrial projects, he added.

After identifying the validity of foreign buyers, 'we insure exports contracts' of Iranian exporters, Moradi said.

If under any conditions, the buyer could not pay, the loss will be compensated by Export Guarantee Fund of Iran, he said, adding that the body will seek for recovery.

Pointing to US sanctions imposed on Iran, he said the Iranian exporter has to shoulder 50% of the predicted risk and another 50 percent is related to foreign buyer.

Moradi went on to say that in this case buyers always complain since they will not be able to pay or to open Letter of credit (LC).

In the absence of LC or banking ties, 'we will work on opening account basis', he reiterated.

Source: Islamic Republic News Agency - IRNA

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