July 2016
AGA-REPORT NO. 267
CONTENT
EXPORT CREDIT GUARANTEES OF THE FEDERAL REPUBLIC OF GERMANY COUNTRY INFORMATION :
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After the payment of old debts: new cover policy for Iran
UNDERWRITUNG POLICY :
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Country risk classification at the OECD: Iran upgraded to Category 6
AFTER THE PAYMENT OF OLD DEBTS: NEW COVER POLICY FOR IRAN On 20 June 2016 Iran paid its old debts owed to the Federal Republic of Germany, which resulted from Hermes-covered business, and thus paved the way for supplies and services to be covered under state Export Credit Guarantees again in future. On the very same day the Federal Government reintroduced cover for exports to Iran. Together with the Investment Guarantees and the Untied Loan Guarantees all three cover instruments of the Federal Republic are now available again. At its meeting on 30 June 2016, the Interministerial Committee (IMC) for Export Credit Guarantees detailed its cover policy. The new cover policy provides that the granting of cover for business transacted on credit terms (repayment periods exceeding 360 days), as a rule, requires security given by the Iranian Ministry of Finance or the central bank. The same basically also applies to transactions with credit periods of up to 360 days. However, there are some exceptions to this rule. For short-term transactions the requirement to provide state guarantees may be waived if the foreign buyer is either an affiliated company of the exporter or belongs to an international group the creditworthiness of which is beyond doubt or if collateral from an Iranian bank, in respect of which informative information material is available, is provided or if third country guarantees exist.
Under wholeturnover and revolving policies no cover facilities are available for any goods for which an export licence is required and for all goods which are intended, in their entirety or in part, for the construction or operation of a nuclear installation. Besides, no limits will be fixed for business secured by bank guarantees (except for transactions with the central bank) but each transaction will be decided individually (so-called “one-time APG”). No matter whether single transaction or wholeturnover cover: In all cases the decision will be taken on a case-by-case basis. At its June meeting, the Interministerial Committee already approved cover for two transactions with Iranian buyers. If you need more information on the currently available cover facilities for Iran business and the required guarantees/collateral, you can turn to the AGA consultants or contact: single
transaction cover: Mr Ingo Schwutke, phone: +49 (0) 40 / 88 34 – 95 69
wholeturnover
and revolving cover: Ms Karina Lasch, phone +49 (0) 40 / 88 34 – 91 09
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July 2016
AGA-REPORT NO. 267
COUNTRY RISK CLASSIFICATION AT THE OECD: IRAN UPGRADED TO CATEGORY 6 At their meeting on 22 and 23 June 2016, the OECD experts routinely reassessed the country risks of the states in the regions Asia and Southern and Eastern Africa. Compared with the previous classifications there have been the following changes:
Country
Category
Previously
Angola
6
5
Iran
6
7
Namibia
4
3
Nigeria
6
5
Papua New Guinea
6
5
Seychelles
6
7
Zambia
6
5
The new country risk categories are applicable with effect from 23 June 2016 and have already been entered in the German export guarantee system. The country risk category is a parameter used in the calculation of the premium.
Published by: Euler Hermes Aktiengesellschaft for the Export Credit Guarantees of the Federal Republic of Germany. PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft for the Investment Guarantees of the Federal Republic of Germany and the Untied Loan Guarantees of the Federal Republic of Germany. Redaktion AGA-Report; Information is provided to the best of our knowledge, however, no responsibility is taken for their correctness. Binding statements on the granting of Guarantees of the Federal Republic of Germany are made only in writing in the course of the application procedure. Our employees in the respective departments will be pleased to assist you with any information on specific matters concerning your cover. Specialized advisory services for small and medium-sized companies is available at: Phone *49 (0) 40 / 88 34 - 90 10 (Export Credit Guarantees) Phone *49 (0) 40 / 88 34 - 94 54 (Investment Guarantees) If you have any further questions or suggestions, please contact the editorial team of the AGA-Report at: Phone *49 (0) 30 / 20 94 - 53 18
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