Details of export support packages / coverage of political and trade risks

According to Inpia and quoting the Export Guarantee Fund of Iran, Afrooz Bahrami attended the research program in relation to On the subject of “economic prosperity and investment opportunities for Iranians abroad,” he said: “Those who come to the country with the intention of exporting investment, in addition to insuring their export contracts, are provided with insurance policies with financing.”

He continued: “Export Guarantee Fund can finance or buy debt of export documents, that is, if the exporter wants to sell his products and goods to foreign countries for a long time and is worried that his capital will not return at maturity, the fund with insurance policies This ensures.

The CEO of the Export Guarantee Fund stated: “If export-oriented industries are concerned about their liquidity, we suggest them to make credit sales in order to control the international market.”

Bahrami said: “For this issue, along with the banking system, we have the debt to buy export documents and we are responsible for guaranteeing it, and at the same time we support them in the liquidity sector.”

He added: “It means that the Export Guarantee Fund is responsible for financing along with the banking system, and on the other hand, in the case of bank guarantees, our interest rate is lower than the rate of the banking system according to the decision of the Monetary and Credit Council.”

Regarding the existing guarantees for the presence of investors in the country, the CEO of the Export Guarantee Fund of Iran also reminded: “There is a lot of capacity in our country, including a significant market and cheap energy, and our 15 neighboring countries import $ 1 trillion annually. It covers 2.5% of their import share.

Bahrami added: “Many investors are worried about political risks for investment, although the region is insecure due to the presence of foreign forces, but our country is one of the safest countries in the region.”

He noted that the Foreign Investment and Technical and Economic Assistance Organization of the Ministry of Economic Affairs and Finance, based on the license it issues, guarantees and covers the political risks of foreign investors, and whenever a foreign investor feels that If he wants to take his capital out of the country, the government will give him this guarantee.

Regarding the role and mechanism of the Export Guarantee Fund in the prosperity of production and the export sector, the CEO of the Export Guarantee Fund of Iran said: “Everywhere in the world, the most important concern of exporters is political and commercial risks that if something happens in the export process, they can repay funds. Endanger the goods of exporters.

Bahrami added: “One of the most important products of the Export Guarantee Fund is insuring export contracts;” The fund’s insurance policies can practically replace LC to ensure a part of the return of money to the Iranian seller and exporter.

He continued: “The fund, based on the databases it has, performs the contract between the seller and the buyer in the process of risk management and accreditation, and receives low fees due to its supporting role and position.”

The CEO of the Iran Export Guarantee Fund noted: The fund has exported $ 17 billion in export coverage over the past 20 years, and recently some exporters have referred to the fund due to sanctions conditions due to these risks, and this is one of the services of the Export Guarantee Fund.

Regarding the fund’s ability to further support exports, Bahrami said: “Unfortunately, the fund’s capital is 0.2% of the country’s total non-oil exports, while we can also support oil.”

He added: “Currently, the registered capital of the fund is 1,300 billion tomans, which should definitely increase. Our counterparts in the region, including Saudi Arabia, have a capital of 4 billion euros, Exim Bank of Turkey has 2 billion dollars and Sache Italy has 12 billion euros.”

The CEO of the Export Guarantee Fund of Iran added: “Of course, the $ 200 million increase in the fund’s capital is on the agenda of the government and parliament, and if this happens, our coverage ceiling will increase and we can take more risks and support more exporters.” do.

Referring to the current situation in the country, Bahrami said: “There is no doubt that we are facing problems inside and the government accepts it. The currency shock that the country faced last year had a serious effect on our economic variables, but this caused To create an opportunity for export, this position is an export advantage, and many countries are devaluing their national currencies in order to create an export advantage.

“I believe that the realization of the exchange rate will help the export jump to prevent the import of many unnecessary goods,” said the CEO of the Export Guarantee Fund. “Manufacturers have always claimed that if smuggling and imports are stopped, and if If the exchange rate approaches its real price and stabilizes, we will conquer the international peaks in exports, and now this has happened, and I believe we must seize the opportunity to export.

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