Iran paid its debt to the German Euler Hermes credit institution, Islamic Republic’s ambassador to Berlin said, IRIB news reported on Sunday.
“There are no more barriers on the way of German banks and companies’ cooperation with Iranians,” Ali Majedi said, “and the company will offer insurance to Iran as of Tuesday.”
As reported, Iran owes Germany about €500 million ($578.90 million) under so-called Hermes covers.
Hermes cover is a common way of referring to an export credit guarantee (ECG) by the German government. These guarantees are an important part of German foreign trade policy and protect German companies in the event of non-payment by foreign debtors. The export credit guarantees of the Federal Republic of Germany offer an array of insurance options which are mainly targeted at exports to developing countries and emerging markets.
Iranian banks and companies faced difficulties for transferring money during the sanctions’ era and foreign credit insurance agencies had to cover Iranian banks’ and companies’ due payments and now the government has to settle all the outstanding debts to foreign firms.
Debts to foreign insurers like Sace and Coface and Hermes had stopped them from opening new credit lines for Iran.
