Euler Hermes

"Iran paid its debt to the German Euler Hermes credit institution, Islamic Republic’s ambassador to Berlin said, IRIB news reported on Sunday. 'There are no more barriers on the way of German banks and companies’ cooperation with Iranians,' Ali Majedi said, 'and the company will offer insurance to Iran as of Tuesday.' As reported, Iran owes Germany about €500 million ($578.90 million) under so-called Hermes covers. Hermes cover is a common way of referring to an export credit guarantee (ECG) by the German government. These guarantees are an important part of German foreign trade policy and protect German companies in the event of non-payment by foreign debtors." (Tehran Times, “Iran’s debt to Hermes cleared,” 6/20/2016)

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Euler Hermes reportedly attended the Euromoney Iran Conference (the “Conference”) held on May 19, 2016. As we noted, the Conference was co-hosted by the Central Bank of the Islamic Republic of Iran, and sponsored by Bank Pasargad, Saman Bank, and Sina Bank. All of these entities remain subject to U.S. sanctions and U.S. persons are required to block their property under Executive Order 13599. (The Euromoney Iran Conference, "Speakers").

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Euler Hermes’ Chief Economist, Ludovic Subran, about reentering Iran: "Caution is required in suggesting that we are witnessing a significant shift in global geo-politics and the adjustment period will be challenging. Some sanctions will remain in place, which will complicate business dealings, and substantial investment in infrastructure and industry is required at a time when foreign exchange and credit risks will increase and social and political expectations require management. Until Iran has free access to global payment systems corporat[ions] will find it problematic to conduct business with the country. International traders and investors will want to see reduced exchange rate volatility and rationalization of the current system of official and free market rates for the Iranian Rial." (Euler Hermes Website, “Iran: The Door is Unlocked. Will it be Opened? Asks Euler Hermes,” 1/18/2016).

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"The German Euler Hermes credit institution has agreed to establish a $5 billion credit line for Iran, Mohammad Khazai deputy minister of economy said Saturday. The credit is to be granted over 2-3 years. Hermes had previously guaranteed some loans for Iran but the country was unable to meet its commitments due to the international sanctions and lack of access to SWIFT interbank messaging service. 'We have agreed to pay Hermes over $500 million over the course of one year as soon as the economic sanctions are eased,' Khazai told Fars News Agency... 'We have held some preliminary talks with EKF, Denmark's official export credit agency, the Italian SACE group, the German Euler Hermes and the UK's Export Finance to prepare the grounds for persuading international banks and lending institutions to grant credit to and establish credit lines for Iran.'" (Financial Tribune, “Return of Int’l Credit,” 12/27/2015)

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Euler Hermes is a subsidiary Allianz of Germany.

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"The German Euler Hermes credit institution has agreed to establish a $5 billion credit line for Iran, Mohammad Khazai deputy minister of economy said Saturday. The credit is to be granted over 2-3 years. Hermes had previously guaranteed some loans for Iran but the country was unable to meet its commitments due to the international sanctions and lack of access to SWIFT interbank messaging service. 'We have agreed to pay Hermes over $500 million over the course of one year as soon as the economic sanctions are eased,' Khazai told Fars News Agency... 'We have held some preliminary talks with EKF, Denmark's official export credit agency, the Italian SACE group, the German Euler Hermes and the UK's Export Finance to prepare the grounds for persuading international banks and lending institutions to grant credit to and establish credit lines for Iran.'" (Financial Tribune, "Return of Int’l Credit," 12/27/15)