EghtesadOnline: Export Development Bank of Iran issued export guarantees worth $23 million from the beginning of the current fiscal year that ends in March.
Ali Saleh Abadi, the bank’s CEO, said Saturday the number of guarantees issued by the EDBI has been undermined by the US economic sanctions that have banned Tehran’s relations with international banking, Financial Tribune reported.
“EDBI cannot issue export guarantees directly due to the (US) sanctions,” he said, noting that only a limited number of foreign entities accept EDBI guarantees, IRNA reported.
Pointing to the detrimental effects of the restrictions on Iran’s foreign trade, he said the bank has increased credit support for exporters and helped in hedging risks from the unfair United States penalties.
Funding for exporters is made available at interest rates ranging from 16-18%, Saleh Abadi said, adding that reputable and creditworthy firms are usually offered the lowest rates.
Apart from EDBI funding, exporters can also borrow from the National Development Fund of Iran, the country sovereign wealth fund.
A total of 10 trillion rials ($76 million) of NDFI resources is to be given to the EDBI to further assist exporters as the government struggles with the sanctions and is moving ahead with plans to increase non-oil export revenue.