For many state transactions, or agreements regarding the issuance of credit lines between Iran and other countries and the implementation of some large techno-engineering projects in certain economic areas like infrastructure, energy, power plants and hydropower dams, water sanitation and drainage or sewage systems, roads, tunnels and bridges etc. in the target markets by Iranian exporters and contractors, which need finance and EGFI is supposed to cover sovereign risks, there is a need for a thorough scrutiny of the target country’s economy.  In general, in order to calculate the maximum capacity if the Fund to cover risks in each and every country and manage the total exposure of the Fund toward them, EGFI studies the key economic indicators of the target country, namely its GDP, the GDP trend in recent years and its outlook, total income and income per capita, FX reserves, Current account balance, foreign debts, its outstanding debts to the WB and IMF or other international institutions and development entities, as well as the total volume of trade with the world and with Iran and the last but not the least its political openness and trade policies toward Iran. Based on this study a certain tentative credit ceiling is set for each country to act as guiding lines for the Fund to foresee what the capacity of the country at the preliminary step to absorb credit is and what volume of risk the Fund should ready to accept. Taking into account the set limit, EGFI manages different insurance cover with a view to its capital adequacy issue to control its portfolio.
You may find EGFI’s country cover policy which is a combination of all of the abovementioned approaches and provisions for all countries with a view to the Fund’s capital adequacy and limitations:

Name of the Country	Country Risk Category	Short Term Credit Ceiling (Million Euros)	MLT Credit Ceiling (Million Euros)	Total Credit Limit (Million Euros)	Cover Policy
Azerbaijan	4	75	150	225	open

Definitions:
Open: The Fund is ready to cover all credits disregarding their tenor (Short, Medium and Long Term)
Limited: The Fund is ready to cover only short-term credits and for the MLT credits the proposals are decided on a case by case basis by the Board but the general MLT policy is limited.
Partially Blocked: The Fund’s general policy is limited and only covering short-term credits proposals are decided on a case by case basis by the Board but the general MLT policy is suspended.
Suspended: The Fund’s general policy is suspended due the severing of political and economic ties.