Containers at the port; Source: istockphoto.com/diego_cervo Enlarge

Containers at the port

© istockphoto.com/diego_cervo

Iran has paid off the outstanding debts relating to the export credit guarantees issued by the German government. This permits the resumption of export credit guarantees, known as "Hermes" insurance", for exports to Iran.

Minister Gabriel declared: "I greatly welcome the repayment of the old debts by Iran. This marks a further key step towards reviving our economic relations."

During the period of sanctions, Iran had a substantial amount of obligations relating to export credit guarantees issued by the German government; these had not been fully repaid. The receipt of the remaining repayments means that Iran has laid the foundation stone for a resumption of Hermes insurance. The German government has been accepting applications for Hermes insurance since Implementation Day on 16 January 2016 and issuing Letters of Interest. The business community has been displaying considerable interest in doing business with Iran and receiving the corresponding insurance to cover the transactions.

Together with the investment guarantees and the untied financial loan guarantees, this means that all of the German government's guarantee instruments are now available again for business with Iran.

The German government's guarantee instruments have for decades been a tried-and-trusted instrument to help companies insure themselves against political and commercial risks to German exports. They have a significant impact on safeguarding and creating jobs in Germany. Last year alone, the German government provided export credit guarantees worth roughly €25.8 billion. The volume of investment guarantees amounted to €2.6 billion in 2015; the volume of untied financial loans totalled €96 million.