Iran offered $2.3bn in insurance to exporters in year ending March

Press TV – Head of Iran’s export guarantee agency (EGFI) says the body has provided more than $2.3 billion worth of insurance to export shipments from Iran over the past calendar year ending late March.

Afrouz Bahrami said on Monday that the EGFI, an export credit agency by definition, had effectively replaced banks and lenders who face hurdles underwriting and backing the Iranian exporters because of the US sanctions on the country.

“In this field, the fund has replaced the banking system and has managed to clear hurdles (faced by) engineering and technical services sector in the country through issuing the guarantees (for export),” said Bahrami.

Bahrami said that the EGFI is planning to further expand its risk coverage for Iranian exporters in the current calendar year, saying insurance schemes would also cover political risks that may befall the exporters and their shipments.

She said political risk coverage would include full compensations for exporters who have seen their assets confiscated in the destination country or those who face problems in transfer of money into Iranian banks because of the sanctions.

Iran’s exports of various non-crude products and services increased over the past calendar year mainly because of a series of government measures that are aimed at offsetting the impacts of the American sanctions on the country’s direct sale of oil.

Officials believe the non-crude sector of the economy has generated around $60 billion in revenues since Washington imposed its sanctions on Iran in November 2018.

The main export items from Iran include various petrochemical products, followed by metals and raw minerals, agrifood and handicraft.