KUKE will cover exports to Iran
Following KUKE’s initiative, the governmental Export Insurance Policy Committee has allowed transactions with Iran to be insured by KUKE as of 1 March 2016. This is a major step towards strengthening the support offered by the Polish state to companies exporting and investing on the Iranian market.
After lifting of the sanctions resulting from Iran’s pursuit its nuclear program, international business circles have become increasingly interested in the Iranian market. Polish entrepreneurs are also eager to take advantage of the opportunity posed by Iran opening its market to foreign companies.
Despite sanctions, Iran’s economy is considered to be one of the most dynamic in the Middle East. Boasting 80 million consumers it holds a great economic potential. Polish exporters are looking for contracts in the mining industry, transport industry and the business of environmental protection. In order to accommodate theses needs, KUKE is ready to insure export contracts for deliveries of capital goods, such as heavy machinery and means of transport, which are financed by medium- and long-term export credits. It’s worth noting that for many years KUKE has been continuously insuring sales of fast moving consumer goods to Iran (export credits not exceeding two years). What is interesting, Polish sweets and biscuits are very popular among the Iranian consumers.
KUKE is in the process of collecting applications for insurance within the framework of medium- and long-term export insurance backed by the State Treasury. No limit has been established for the value of a single transaction eligible for cover, nor for the total amount of exports insured to Iran. We are also being approached by Iranian entities interested in working with Polish suppliers, as well as banks ready to finance such transactions.
In order to identify the opportunities for Polish exporters on the Iranian market, Marek Czerski, President of the Management Board of KUKE will take part in an economic mission to Iran from 6 to 9 March 2016.