Belgian export credit agency Ducroire/Delcredere has softened its policy on Iran regarding short, medium and long-term credit transactions.
The guarantee requirements have been considerably reduced and the coverage capacity expanded significantly. For short-term credit transactions Ducroire/Delcredere will grant cover on open account, without the requirement of a bank guarantee.
A premium supplement is required for insurance of the commercial risk. Ducroire/Delcredere has also dropped the mandatory requirement of a bank guarantee for medium and long-term credit transactions, with the exception of cover for relatively large transactions with the public sector. For such transactions exceeding Euro10mn , a sovereign or bank guarantee is still required. The coverage capacity for medium and long-term transactions has also been increased by raising the ceiling to €600mn.
The softening of the Ducroire/Delcredere policy reflects the achievements of the Iranian economy over the past few years. In addition to the generally favourable oil market conditions, the economic reforms which the government has been able to implement despite the difficult political context, have contributed greatly to this success. These favourable developments have strengthened both domestic and foreign confidence in the country’s current healthy economic situation and its positive expectations. T
he growing domestic confidence stimulated domestic demand, which has been translated into a pronounced increase in Iranian imports. Ducroire/Delcredere, which shares the general climate of confidence, wishes to take advantage of this trend and has responded to Iran’s rising demand for imports by greatly expanding the insurance capacity in regard to that country. Ducroire/Delcredere believes that in doing so, it is fully living up to its export promotion and support role.