Finnvera supports Finnish exporters’ trading in Iran
Finnvera has revised its country policy for Iran after the EU’s economic sanctions were lifted in January. This means that Finnvera can begin to grant export credit guarantees for exports from Finland to Iran. Because of the sanctions, it is almost ten years since export credit guarantees were last granted for Iran.
Since the economic sanctions were lifted, Finnish companies have shown interest in the Iranian markets.
“We are ready to receive guarantee applications for exports. Our task is to support Finnish export companies in their efforts to secure contracts in Iran,” says Executive Vice President Jussi Haarasilta.
According to Haarasilta, financing on new markets typically opens first between governments or banks. When more experience is gained, it becomes more common to provide financing for companies.
Iran is a wealthy country and thereby a large market. This creates great potential for exports. Haarasilta assesses that, for instance, the modernisation of Iran’s basic infrastructure could bring opportunities for Finnish exporters.
“Of course, it must be remembered that competition over contracts will be fierce. Many other countries have their eye on the Iranian markets, and the export credit agencies of several states have also relaxed their policies on Iran after the sanctions were cancelled.”
“A challenging business environment”
Jussi Haarasilta underlines that although trade with Iran will be easier once the sanctions have been suspended, projects should be prepared carefully in advance.
“On the whole, the business environment is challenging but I encourage companies to explore business opportunities.”
Haarasilta points out that some of the sanctions caused by the nuclear programme are still in force. Human rights sanctions remain in force, too, Haarasilta stresses.
He also underlines that each export project is always assessed on a case-by-case basis at Finnvera.
Iran is the world’s 18th largest economy. The International Monetary Fund (IMF) has predicted a growth rate of about four per cent for the Iranian economy in the coming years.
Read more about Finnvera’s export credit guarantees and country policy.
Jussi Haarasilta, Executive Vice President, tel. +358 29 460 2601, jussi.haarasilta (at) finnvera.fi