Export Guarantee Fund of Iran increases capital by $200m
TEHRAN - Export Guarantee Fund of Iran (EGFI) has increased its capital by $200 million, IRNA reported on Sunday, quoting the head of the fund. According to Afrouz Bahrami, after the mentioned increase the EGFI’s capital has reached $300 million.
“This will increase the fund's risk coverage up to $5 billion and will be a major step in providing practical support for the domestic production,” Bahrami said. EGFI’s capital was supposed to be increased by €100 million from the revenues of the National Development Fund (NDF) in the current Iranian calendar year (March 2020-21). The head of the Export Guarantee Fund said that the mentioned capital is going to support the Fund's guarantees and insurance policies, adding that "based on the current standards, we can cover export risks up to 10 times the fund’s capital.” Bahrami had previously told IRNA that the EGFI capital should be at least €500 million to reach international standards. Back in July 2019, the official had announced that EFGI was ranked first in terms of performance among the members of the Aman Union. Affiliated to the Ministry of Industry, Mining and Trade, the Export Guarantee Fund of Iran has been established in order to expand and promote exports, to protect exporters against non-commercial risks, which are normally not covered by the insurance companies, and to guarantee credits used for export of such goods and services.