Tehran, YJC. -- According to Taher Shah Hamed, Chairman and CEO of Export Guarantee Fund of Iran (EGFI), I.R. of Iran’s Parliament dedicated USD 200 m. in the Budget Law of the fiscal year 2013-2014, as a capital increase for EGFI.
The source of this amount is "deposits of Foreign Exchange Reserve Account” which was in EGFI’s trust for backing up its bond issuance.
This capital increase could be considered as a compensation for the substantial amount of claims paid by EGFI during the last two years in order to indemnify Iranian exporters and outward investors for the loss incurred. Moreover, with this capital increase, EGFI will have a better capital adequacy ratio, which in turn will boost its ability for protecting its clients, through issuing guarantees and insurance policies.
EGFI, established in 1973, as the first-established Export Credit Agency (ECA) in Middle East and North Africa (MENA) region, is the official Export Credit Agency of Iran, 100% government-owned and affiliated to the Ministry of Industry, Mine, and Trade.