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EGFI Appraising Russian Firms

EGFI Appraising Russian FirmsEGFI Appraising Russian Firms

The Export Guarantee Fund of Iran, the state-run export credit agency has been monitoring Russian companies’ creditworthiness in line with Iran’s plans for boosting trade with that country, said Kamal Seyyed Ali, managing director of EGFI.

“So far, we have confirmed 10 Russian companies’ creditworthiness at levels ranging from $5-$80 million. EGFI is providing exporters with coverage against any risk in trading with these companies,” he said in an interview with eximnews.ir.

“We are also trying to create a list of credible Russian companies, in various sectors, to increase the safety of trade between the two countries,” he added.

Russia exported $420 million worth of goods to Iran during the first two months of current Iranian fiscal year that began in March. Iran’s imports from Russia recorded a rise of 494% year on year.

Seyyed Ali added that the quality of exportable goods should improve, so that they would be able to compete with foreign rivals in international markets.

 EGFI’s International Ties

EGFI is currently working with three European export credit agencies, he said. “We also signed agreements with other ECAs during the Berne Union meeting, which enables us to expand our cooperation especially in coinsurance and knowledge transfer.”

“For example, Italy’s SACE has held four training courses inside Iran so far. We also get other ESAs’ help when measuring creditworthiness of companies.”

However, Iran is still considered as a country with a high risk. “We are also trying to revive Iran’s credit rating to the pre-sanctions levels.”

The Central Bank of Iran will allow the banking system to cover the risk of volatility in foreign exchange rates, when it manages to unify the forex rates.  

“However, the coverage would not include hedging foreign currencies against the Iranian rial, mainly due to the instability in rial prices,” he said.

Financialtribune.com