Economy, Business And Markets

EGFI to Double Cover to $2b

EGFI to Double Cover to $2bEGFI to Double Cover to $2b

The Export Guarantee Fund of Iran, the state-owned agency for export credit, is seeking to provide $2 billion in coverage for the export of non-oil goods by the end of the fiscal year that ends in March 2017, twice the amount it offered in previous year.

According to Kamal Seyyed Ali, EGFI chief executive, the National Development Fund of Iran, Ministry of Industries Mining and Trade, and Management and Planning Organization have allocated resources for supporting non-oil exports, though he believes, “more support is needed,” ISNA reported.

“The coverage should reach $7-8 billion as more focus is needed on ways to promote exports in light of the positive trade balance,” said Seyyed Ali.

Only 10% of financial resources go to support exports, he said. “The banking sector, especially Export Development Bank of Iran should pay more attention to this sector.”

The EGFI is offering guarantees at 80% discount, in a bid to prop up exports and promote export guarantee cover and help boost non-oil exports. It also supports Iranian exports to high-risk countries such as Iraq and Afghanistan. The fund also guarantees foreign investments that help expand non-oil export volume.