EGFI is the only Iranian state – owned export credit insurance company affiliated to I.R.of Iran’s Ministry of Commerce. It has an independent legal, financial and administrative entity, but is supported financially by the government.

EGFI is managed by a board of Directors (comprising 4 members) elected by the minister of Commerce as the head of EGFI’s General Assembly. The chairman of the board is also the CEO.

 

The Members of EGFI’s General Assembly are as follows:

·                 Minister of Commerce, Who presides over the general Assembly,

·                 Minister of Finance & Economic Affairs,

·                 Minister of Foreign Affairs,

·                 Minister of Industries,

·                 Head of the plan and Budget Organization,

·                 President of the Central Bank of the Islamic Republic of Iran.

·                 President of ExportDevelopmentCenter of Iran.

·                 Two members of the Islamic Consultative Assembly as supervisor, from the  Commercial and Distributions as well as the Economic Affairs Commissions nominated by the said Assembly.

According to EGFI’s Administration Act, in addition to its Capital reserves and premium income, one percent (1%) of the CIF value of the goods imported by private importers should be allocated to EGFI by the government, to be deposited in a contingency reserve account.

 Under its guarantees, EGFI insures domestic & International financial institutions/banks or creditors against the risk of non-repayment of export credits or non-fulfillment of contractual obligations by the foreign buyers or local exporters .

Meanwhile, EGIF’s Policies cover the following commercial & political risks:

·                        Buyer’s failure to accept the exported goods & services

·                        Non – payment of the price of goods & services on due date

·                        Buyer’s protracted default due to bankruptcy, insolvency or lien

·                        Outbreak of war or state of war

·                       Straining or severance of diplomatic relations with the buyer’s country as a result of which the exporter is unable to collect his receivables on the due date

·                        Imposition of economic policies in the buyer’s country which may block the exporter’s receivables

·                        Imposition of restrictions on imports or foreign exchange transfer in the buyer’s country

·                        Confiscation & Nationalization of the buyer’s properties as a result of which the exporter is unable to collects its dues

   All countries are covered by EGFI , except for US Public section and Israel.

    EGFI covers all permissible export commodities & services.

   With an EGFI’s Policy/guarantee, you will not only cover yourself against default payment by your foreign buyer due to political & commercial risks, but also arrange the necessary finance for your export operations.

 Iranian banks may wish to provide your foreign buyer(s), with buyer’s credit lines to enable him/them to buy now and pay later. In other words, under this scheme, you will receive the amount of the deferred L/C opened in your favor by the foreign buyer upon presentation of shipping documents to the financier, and consequently, transferring the risk of non-repayment of the credit to the financier(Iranian bank) and giving the foreign buyer enough time to pay. To insure the due repayment of the credit granted to the foreign buyer/buyer’s bank, the creditor/Iranian bank may ask for securities, which may sometimes be beyond buyer’s capabilities to provide. In such cases EGFI’s “Buyer’s Credit Guarantee” can be an appropriate substitute for the collateral required by the Creditor. In other words, this guarantee, once issued in the favor of the Creditor/Iranian bank, will insure him against the risk of non-repayment of the credit by the debtor (foreign buyer or his bank) on the maturity date. EGFI evaluates the creditability of the foreign buyer/his bank and obtains an appropriate collateral (sometimes sovereign guarantee) prior to the guarantee issuance.

If you wish to purchase your export commodities from a local manufacturer on credit basis or to take loans in form of foreign exchange or local currency(Rial) from domestic or International Banks/Financial institutions, you may provide the creditors with EGFI’s different credit guarantees as a substitute of the collateral they may require .

 Depending on the type of the guarantee or policy requested by the exporter, a minimum premium or commission fee is charged. The amount of the premium, applicable to policies, is determined with respect to the terms of payment and the political & Economic situation of the buyer’s Country. In addition to the applicable premium, a little amount is charged as administration fee for Whole turnover policies. To issue guarantees, EGFI charges the debtor a minimum amount of commission fee with regard to the credit period.

 Depending on the type of the guarantee or policy requested, the application procedure may differ. Please refer to “services & Products” page for detailed procedure flowcharts.

EGFI does not usually involve in exporter’s marketing operations, nor does it help them to find trade partners. But EGFI is planning a scheme to cover the costs of unsuccessful marketing efforts made by an exporter to enter new markets.

EGFI does not usually support imports, but if you are an Iranian exporter and wish to import raw materials with the aim of further inland processing and exporting the final product, EGFI can provide you with credit guarantees ( to be submitted to the domestic or international banks/ financiers who grant you export facilities)

Only the Iranian nationals or foreign trading joint venture companies registered in Iran can benefit from EGFI’s services, except for the foreign creditors who may provide Iranian exporters with financial facilities against EGFI’s Foreign Exchange Credit Guarantee.