In some transactions, EGFI is required to take the risk of a bank in the payment of some term documentary credits or accept the bank guarantees provided by some foreign buyers to guarantee their payment obligations. Therefore, the Fund is ready to assess the banks (Issuing bank, advising bank, or confirming bank) by determining the credit rating and credit limit of such banks that are acting as the representatives of the trade parties entering into transactions with Iranian exporters.
Such an assessment, in line with is done by means of using the internal credit rating models of the fund and based on quantitative and qualitative information obtained from reliable international information sources on banks analyzing financial indicators in various fields such as capital adequacy, asset quality, management, profitability and liquidity and major financial indicators based on which the fund evaluates the credibility of the bank and sets a credit ceiling and defines a validity period for such banks to determine whether the bank is creditable enough for short, medium or long term credits in the export target countries.
The purpose of such an assessment of banks is to measure the risk of bankruptcy, lien, or failure to meet the payment obligations of the foreign buyer and assess the probability of default in fulfilling guarantee obligations or their ability to repay the due debts as well as their resistance to economic recessions and international monetary shocks. The validity period of the limit set for banks is 6 months after the date of notification of the limit to the applicant.