Iranian exporters\u2019 difficulties in getting paid by their foreign buyers is a major risk to their business, says the managing director of Export Guarantee Fund of Iran. <\/p>\n\n\n\n
Pointing to the dire financial conditions of their overseas partners due to coronavirus pandemic, Afrouz Bahrami said it has raised commercial risks for exporters. <\/p>\n\n\n\n
\u201cBusinesses of foreign partners could go bust and this could apparently increase risks for Iranian exporters,\u201d she was quoted as saying by Fars News Agency. <\/p>\n\n\n\n
\u201cCommercial risks have particularly increased due to the coronavirus spread and falling crude oil prices,\u201d she added, recalling that the EGFI has raised its risk cover in proportion to the rising export risks. <\/p>\n\n\n\n
She recalled that Iran\u2019s export sector has been hit hard by the deadly virus as many border crossings were closed during the initial weeks of the coronavirus breakout.<\/p>\n\n\n\n
However, there are some positive signs that exports to neighbors are resuming gradually as border restrictions are eased.\u00a0<\/p>\n\n\n\n
Non-oil export increased 71% in weight and 60% in value in the past three weeks compared to the month earlier. <\/p>\n\n\n\n
She pointed to political risks emanating from the US sanctions as another obstacle Iranian exporters are grappling with, adding that some foreign trading partners tend to use (abuse) the sanctions to crate difficulties for exporters. She did not elaborate.<\/p>\n\n\n\n
To cope with such issues and help promote exports, the chief of Iran\u2019s export credit agency said the administrative bodies, such as the Industries Ministry, are working to find new target markets, saying that this is a sign of \u201cexporters\u2019 willingness to enter new markets\u201d. <\/p>\n\n\n\n
Bahrami said increasing exports to Iran\u2019s 15 neighbors is important concurring that the neighboring countries are mostly categorized as \u201chigh risk\u201d countries when it comes to doing business. <\/p>\n\n\n\n
Promoting trade with neighbors is seen as one effective way to mitigate economic losses imposed by the hostile US administration, especially under Donald Trump\u2019s watch.\u00a0<\/p>\n\n\n\n
With a mandate to help promote non-oil exports by providing companies export guarantees and insurance, the state-owned credit agency has announced a plan to safeguard exports. <\/p>\n\n\n\n
It says it wants to expand insurance cover for exporters from the previous $2 billion to $2.3 in the current calendar year. It also has plans to issue export credit guarantees worth $700 million with priority to Eurasia. <\/p>\n\n\n\n
EGFI says its export insurance cover provides the best substitute for letters of credit issued by banks at a time when the economy is burdened with major banking hurdles due to the tough US penalties.<\/p>\n\n\n\n
EGFI said earlier that it had covered export risks worth $2.6 billion during the last fiscal year that ended in March. This was a 20% growth compared with a year earlier. <\/p>\n\n\n\n
Short term insurance cover amounted to $1.2 billion, representing 46% of the total cover to non-oil exporters last year — up 42% annually. <\/p>\n\n\n\n
Likewise, short-term and mid-term cover reached $834 million to post a 16% rise on a year-on-year basis.<\/p>\n\n\n\n
Highlight: Afrouz Bahrami: Businesses of foreign partners could go bust due to the pandemic and apparently increase risks for Iranian exporters<\/p>\n\n\n\n
Caption: Promoting trade with neighbors is seen as one effective way to mitigate economic losses imposed by sanctions.\u00a0<\/p>\n\n\n\n