Iran's Export Guarantee Fund to back up private sector's exports

Tehran, Iran, Jan.14

Trend:

The director general of Foreign Investment Office of the Iran's Ministry of Industry, Mining and Trade announced that the Export Guarantee Fund could provide guarantees for the export of oil by the country's private sector.

"The cruel US sanctions have put a lot of restrictions on Iran's international relations. But the coordination between monetary, financial, and commercial sectors will reduce the effects of sanctions,” director general of Foreign Investment Office of the Ministry of Industry, Mining and Trade Afrouz Bahrami said, Trend reports citing IRNA.

Bahrami said that political and economic risks are among those to be guaranteed by Export Guarantee Fund.

“There is a vast database of buyers of products in the world, through which millions of unknown but valid buyers can be introduced to vendors,” he said.

He reminded that some petrochemical exporters give discounts to buyers, while they don't have to give any discount on credit sale agreement.

"If exporters are worried about repayment of credit sales, they can use the credit sale agreement guarantee of the Guarantee Fund," he explained.

Given the reduced financial strength of banks, the Guarantee Fund could set the issuance of technical and engineering services, which, according to their state-owned nature, would be accepted by foreign parties, Bahrami believes.