This kind of credit guarantee could be used as a collateral requested by the manufacturer and is an irrevocable but conditional commitment of the Fund toward the manufacturer. In other words, there are many Iranian exporters and traders who are not acting as a manufacturing company but have the capacity to sell other manufacturer’s products in the export markets. Such traders may refer to the manufacturers and ask them to give them the manufactured goods on credit terms so as to sell the goods in the target export markets and then pay off the manufacturer. The Fund, based on the Iranian manufacture’s request does the creditworthiness assessment of the Iranian trader and backed by their credit standing and the type of securities to be mortgaged to the Fund, EGFI is ready to issue a guarantee to accept the obligations of the exporters to the manufacturer on due date. Such a guarantee provides 100% cover and is issued in Rials or foreign currency (according to the request of the manufacturer).
This credit guarantee is issued only in favor of main manufacturers, or their affiliated cooperative companies with commercial activities who enjoy a production license issued by the Ministry of Industry, Mines and Trade.