EGFI to Open 21 Offices to Boost Exports

EghtesadOnline: The Export Guarantee Fund of Iran is planning to open 21 offices in the provinces to help address exporters’ increasing demand for guarantees.

News ID: ۷۵۰۵۸۳

01 August 2020

"Provincial offices should ease the process of issuing export guarantees, register exporters and undertake the primary steps of issuing guarantees," Afrouz Bahrami, EGFI's head was quoted as saying during a meeting with members of Sistan-Balouchestan Chamber of Commerce, Industries, Mining and Agriculture on Thursday.

Political risks are a major concern for exporters and state-owned export credit agencies are developed to help meet these concerns and boost exports, she added, IRNA reported.

"Currently, sanctions are a major hurdle exporters of goods and services are facing," she said, "Trade with neighbors also is now high risk and this has made the role and significance of EGFI all the more crucial."

EGFI covered export risks worth $2.6 billion in the last fiscal year that ended on March 19. This was up 20% compared with a year earlier.

Short-term insurance cover amounted to $1.2 billion, representing 46% of the total cover to non-oil exporters last year.

The EGFI says addressing Iranian exporters’ needs by foreign buyers is a major risk to their business.

With a mandate to help promote non-oil export by providing local companies export guarantees and insurance, the state-owned agency has announced a plan to do all it can to safeguard the export sector.

EGFI wants to expand insurance cover for exporters from the previous $2 billion to $2.3 in the current calendar year. It also has plans to issue export credit guarantees worth $700 million with priority to Eurasia.

It says its export insurance cover provides the best available substitute for letters of credit issued by banks at a time when the economy is saddled with major banking hurdles due to the tough US penalties, among other constraints.