Iranian exporters to Iraq received $113M compensation

Business Materials 16 May 2019 09:38 (UTC +04:00)

Tehran, Iran, May 15


Speaking at a meeting of Iran- Iraq joint Chamber of Commerce, head of Export Guarantee Fund of Iran Afruz Bahrami noted that Iranian exporters who trade with Iraq received $113 million compensation, Trend reports citing IRNA.

The official did not provide more detail about the reason for the compensation. "Possible political and trade risks may challenges for the return of exports foreign currency revenues," Bahrami said.

She indicated that insurance guarantee would support financial security of the exporters. In her words, after the US sanction were imposed, the value of insurance issued by the Export Guarantee Fund insurance has increased and it can be considered the only replacement for letter of credit (LC).

"Previously, only banks could issue guarantee for exports, but due to the sanctions the Export Guarantee Fund started issuing these guarantees to solve the problems of exporters," Bahrami added.

"The Export Guarantee Fund of Iran has $2.3 million for covering risk that include 5 percent of non-oil exports. The aim is to increase the insurance service capacity to global standard," she said. "The Fund's general insurance covers $3.5 billion, and about $630 million from the amount has been allocated to insurance of exporters that trade with Iraq, as we pay special attention to trade operations with this country."

At the meeting, the official signed a memorandum of understanding with Iran-Iraq joint Chamber of Commerce.