Iran's ECA Expands Int’l Ties During Berne Union Meetings

The Export Guarantee Fund of Iran, Iran’s state export credit agency, signed agreements with its counterpart in Germany, Switzerland, Hungary, and Sri Lanka on the sidelines of Berne Union Annual General Meetings in Lisbon, Portugal

Kamal Seyyed Ali, EGFI’s managing director, held meetings with officials from Germany’s Euler Hermes on Tuesday, where the two bodies agreed to enhance cooperation on business data exchange, coinsurance, reinsurance and training, the EGFI public relations office told the Financial Tribune.

 An agreement was also signed between EGFI and Switzerland’s SERV on Tuesday.

Serve had also reintroduced its coverage for Iran right after the sanctions were removed in mid-January.

Seyyed Ali also signed agreements with Hungarian ECA Menhib and Sri Lanka’s Export Credit Insurance Corporation, SLECIC.

On the sidelines of the meetings, Seyyed Ali said that European ECAs have been visiting Iran since the lifting of the sanctions in January.

“We have always made good on our financial commitments and have enough foreign exchange resources, making European ECAs interested in restarting relations with Iran.”

He also said that EGFI is trying to use its potentials for luring more foreign investments.

“At the moment, most of the countries in the [Middle East] region are insecure and instable. Iran is more stable and secure compared with other regional states, which helps lower the risk and the cost of doing business with the country,” according to Seyyed Ali.

Euler Hermes in a press release Tuesday referred to Iran and Germany’s successful partnership before the sanctions, noting “the current cover demand shows that the level of trade can be upgraded to the pre-sanctions level.”

“Since June 2016, the federal exporters and banks have been supported with Hermes guarantees for doing business with Iran.”

Hermes also noted that with a total annual coverage of €1-€2 billion, Iran was one the top destinations for exporting German goods and services especially in industries like automotive, petrochemical, renewable energy, medical infrastructure and healthcare

“Iranians prefer German goods and knowhow,” the body said.

The EGFI is expanding ties with various export credit agencies (ECAs) and has held talks with institutions across the world, including the United Kingdom Export Finance (UKEF), Japanese Nippon Export (NEXI)and Investment Insurance Export Credit Guarantee Corporation of India(ICGC), South Korea’s K-Sure, and Italy’s SACE.

The body has also signed agreement with ECAs from Russia, South Africa, Turkey, Austria, Finland, Norway, Sweden and Australia.

The Berne Union Annual General Meetings in Lisbon began on October 24 and will run through October 28.

Caption: EGFI and Germany’s Euler Hermes agreed to enhance cooperation on business data exchange, coinsurance, reinsurance and training.