Trump’s sanctions halt trade credit insurers’ return to Iran

(Global Trade Review, London, 18 August 2018) Two weeks after renewed US sanctions against Iran, it appears trade credit insurers are winding down the little business they had reinstated in the country since 2016. Arash Shahraini, board member and deputy CEO of the Export Guarantee Fund of Iran (EGFI) stated that "After the announcement of the US sanctions, all private credit insurers who had some interests in dealing with the US stopped their cover on Iran. Now as far as I know, only export credit agencies (ECAs) continue to give cover to Iran.” Technically speaking, cover cannot be cancelled retrospectively, so companies should be able to use the insurance they have already subscribed to in case of default due to the re-implementation of sanctions. Iranian companies that have made use of private insurance will now have to turn to other options, such as ECAs. “Right now, I am in the process of negotiations for some transactions and projects for getting cover from ECAs for Iranian projects and transactions,” noted Katayoon Valizadeh, a senior consultant in credit insurance and risk management in Tehran.