...

Iran allocates 150M euro for export guarantee

Business Materials 23 April 2017 12:00 (UTC +04:00)

Baku, Azerbaijan, Apr. 23

By Fatih Karimov – Trend:

Iran will allocate 150 million euro for export guarantee in this fiscal year (started March 20), Mojtaba Khosrotaj, Iran’s deputy industry minister, said.

The country’s National Development Fund will deposit the money in certain banks to issue the credit letters for exporters, Khosrotaj, who heads the Trade Promotion Organization (TPO) of Iran, said, Mehr news agency reported Apr. 23.

He further said that the assets will be allocated to export technical and engineering services.

Earlier, Mohammad Reza Ansari, the head of International Consultants and Contractors Association of Iran (ICCA), said that the major problem in expanding engineering service exports is issuing letter of guarantee by Iranian banks.

“Foreigners don’t accept the letter of guarantees, issued by Iranian banks, including the Export Development Bank of Iran,” he said, adding that the problem can be resolved by government-to-government agreements.

The country’s engineering service exports have surpassed a $2 billion mark since the implementation of nuclear deal in January 2016.

Ansari said that Iran’s targeted markets can absorb at least $25 billion of Iranian engineering service exports, in case all of banking and financial restrictions are eliminated.

Tags:
Latest

Latest