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Germany’s Hermes offers to cover Iran energy projects

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Staff Writer | June 28, 2017
German Economy and Energy Minister Brigitte Zypries said Euler Hermes, a leading provider of trade credit insurance, is interested in covering investments in Iran, especially in energy and electricity sectors.
Brigitte Zypries
Relations   A leading provider of trade credit insurance
The German minister made the announcement during a meeting with Iranian Foreign Minister Mohammad Javad Zarif on his visit to Berlin on Tuesday to discuss further expansion of economic ties.

Hermes cover is a common way of referring to an export credit guarantee by the German government. The guarantees are an important part of German foreign trade policy and protect German companies in the event of non-payment by foreign debtors.

Germany’s export credit guarantees offer an array of insurance options that are mainly targeted at exports to developing countries and emerging markets.

The German insurer had been active in Iran in the past but a disconnect occurred when the country was hit by nuclear sanctions. Iran owed a significant amount of debt to the insurance company, but it was fully repaid after the sanctions relief.

Subsequently, Euler Hermes announced that it will resume its activities in Iran in the near future.

“Trade between Iran and Germany exceeds $3billion, which is pretty good,” Zypries was quoted as saying by the government’s official website,