Tehran, Iran, June 20
By Mehdi Sepahvand - Trend:
In a series of talks between Iran and Germany last week, problems related to the Hermes cover were completely resolved and the Hermes cover will be ready to go to Iranian projects starting June 21, according to an announcement by Iran’s Ambassador to Germany Ali Majedi, IRIB news agency reported June 20.
A Hermes cover (Hermesdeckung in German) is an export credit guarantee (ECG) by the German Federal Government. The management of the guarantees is in the hands of Euler Hermes (which is the lead) and PricewaterhouseCoopers.
“Almost all of the debts relating to the Hermes cover were settled and we agreed that a small amount of remaining debt that concerns the shipping sector be paid in installments,” the ambassador said.
Under sanctions, Iran had been unable to pay a debt of €500 million for the guarantees it had received from the German government.
Majedi noted that if the Hermes cover is once again given Iran’s export projects, world’s major banks will be encouraged to restore relations with Iran.
The sanctions were lifted off Iran in January. However, big banks have been retaining a fear of reestablishing ties with Iran, having in mind heavy punishments some of them suffered for doing business with Tehran in contempt of the sanctions.
“It is expected that by the end of this week when the Organization for Economic Cooperation and Development convenes, Iran’s investment risk will have decreased from 7 to 5,” the Iranian official said.
“We plan in cooperation with related ministries to use the Hermes cover for at least 2 or 3 projects by the end of the year,” he said.