Japan seals Iraqi trade ties

As a sign that ECA-supported financing is growing in Iraq, Nippon Export and Investment Insurance (Nexi) has signed new framework agreements with Iraqi institutions.

The agreements were signed with the Iraqi ministry of finance and the Trade Bank of Iraq and will allow them to issue purchase authorisations to Japanese exporters and approve the issuance of letters of credit (LCs) on the request of Iraqi buyers.

Under the agreements, there will be a one-year LC payment term which will cover losses from insurance claims and payment default. Additionally, Nexi will be able to provide insurance to a transaction without a Japanese bank or third country LC confirmation.