$180m to cover export risk liabilities to Kazakhstan

December 17, 2009 - 0:0

TEHRAN – The Export Guarantee Fund of Iran stated that in order to support the increase of exports to Kazakhstan this country was kept in group 4 of the risk classification (category) with a credit limit of $180 million.

IRNA news agency reported that $60 million is allocated for short term credit limits (below two years), and $120 million is set for medium and long term credit limits (from 2 to 8 years).
The report warns business persons and investors interested in doing business in Kazakhstan to take heed due to the global crisis and to reduce risk by consulting experts and getting insurance before closing contracts and working through the six banks approved by the EGFI in Kazakhstan.
Iran and Kazakhstan, two oil-rich countries, both profit from subterranean and underwater oil and gas reserves.
In recent years, Kazakhstan has expanded its refined oil shipments to Iran, which despite its vast crude reserves does not have the capacity to refine enough oil for its domestic use.
In April 2009, during a meeting between the Iranian and Kazakh presidents, the two agreed on the need to overhaul the world financial system, with Iranian President Mahmoud Ahmadinejad saying that “Through joint efforts we will manage to neutralize the impact of the financial crisis and strengthen regional economic cooperation.”
EGFI was established in 1973 following the devaluation of the U.S. dollar and the consequent shortage of oil revenues in the early 70s.
It is the only Iranian state–owned export credit insurance entity affiliated to the Ministry of Commerce acting under the supervision of the Export Promotion Center of Iran with the aim of covering Iranian exports against major political and commercial risks.   EGFI was re-established as an independent entity affiliated to Iran’s Ministry of Commerce in 1994 to help Iranian exporters set up their trading positions following the disruption caused by the 8-year imposed war and to increase the country’s non-oil exports revenues