TEHRAN (Tasnim) � Germany's Economy Ministry expressed readiness to reopen Hermes export guarantees for trade with Iran.

In a statement on Monday, the ministry announced that Germany�s Hermes insurance company is ready to resume its activities with Iranian financial institutions, Reuters reported.

It further confirmed that Iran had settled outstanding debts from previous Hermes guarantees.

Earlier, Iranian Ambassador to Berlin Ali Majedi said the Islamic Republic has cleared its debt to the German company.

Majedi announced on Sunday that Iran has paid off its 500 million euros ($569 million) debt to Hermes, a German government arrangement that protects German companies if foreign debtors fail to pay.

He added that the payment has removed obstacles in the way of Tehran-Berlin business ties and that the two countries� banks can now boost their cooperation.

One of the main reasons that the Islamic Republic, despite a lasting nuclear deal between Tehran and world powers, had not been able to repay its debts to the German firm was the difficulties in working with foreign banks.

Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 finalized the nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA).

While the JCPOA came into force in January, Iran still has still problems in its banking transactions with major foreign banks.

By Tasnim News Agency