News ID: 219034
Published: 0338 GMT July 29, 2018

EGFI director: Iran faces no limitation in guaranteeing export contracts

EGFI director: Iran faces no limitation in guaranteeing export contracts

Despite all problems stemming from domestic foreign forex market fluctuations and crippling sanctions imposed on the country, Export Guarantee Fund of Iran (EGFI) has no limitations in guaranteeing exports contracts.

The EGFI is a unique supporting organization which has allocated small commission for exports, said Sekhavat Moradi, the director of the company's public relations office.

Speaking to IRNA on the sidelines of the 24th Iran International Electronic, Computer and E-Commerce Exhibition (ELECOMP 2018), which is underway in Tehran, he expressed readiness to support exporters.

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: political and commercial.

"A country may be involved in war, revolution or bankruptcy," he said while reiterating that the EGFI will cover the insurance under any condition.

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

As the only insurance body of the Industry, Mine and Trade Ministry, the EGFI 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 is unable to pay, the loss will be compensated by the EGFI, he said, adding that the body will seek recovery.

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

Moradi stated that in this case buyers always complain since they are 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.


Resource: IRNA
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