Economy, Business And Markets

EGFI Needs to Increase Capital

EGFI Needs to Increase Capital
EGFI Needs to Increase Capital

The Export Guarantee Fund of Iran (EGFI) first needs to increase its capital assets to $500 million if it is to finance 10 percent of the costs of the country’s non-oil exports and foreign investments, the CEO of the fund said.

The asset is now $180 million, according to Taher Shah-Hamed who was speaking on the sidelines of a banking conference dubbed “Comprehensive Banking System, New Approach in Financing Exporters” held last Wednesday.

“The current year’s non-oil exports are valued at $40 billion, of which 10 percent worth of $4 billion must be covered by EGFI as capital,” he said.

Also, based on international standards, one-eighth of the total value of non-oil exports should be available in the fund’s capital, which is $500 million, said Shah-Hamed.

The fund had asked the National Development Fund of Iran to allocate $500 million of its resources to EGFI to increase its capital assets, the CEO said.

However, he added, “the government’s Economic Commission refused to finance the budget and the vice president for planning and supervision was assigned to allocate the amount for next year’s budget.”