Improving the Role of Eximbanks/ECAs in the OIC Member States
48
This, however, appears to be emanating from its new strategy of focusing on domestic credit
insurance and general insurance so as not to compete with Indonesia Eximbank.
3.5.4 Iran
Export Development Bank of Iran
Description:
Export Development Bank of Iran (EDBI) was established in 1991 as a specialized bank, fully
owned by the Central Bank of the Islamic Republic of Iran. Its mandate is to promote non-oil
exports and promote relations with all Iran’s current and prospective trading partners. Currently
EDBI is the country’s Eximbank and provides financing facilities and banking services (including
deposit-taking) to exporters and the importers of Iranian goods and services and promotes these
products in international markets.
The Board of Directors comprises 5 members who are appointed by the Bank’s General
Assembly and chaired by the Ministry of Finance and Economic Affairs. The Supreme Council of
the Banks, led by the Governor of the Central Bank of Iran, provides recommendations to the
Board of Directors. The Central Bank regulates EDBI as part of its mandate to oversee operations
of banks as well as setting interest and exchange rates. In an effort to strengthen its financial
standing, EBDI has improved its financial structure and liquidity management and utilized risk
management tools and strict internal control policies to mobilize and allocate resources for
improved financial performance.
The Bank has a staff of 1,905 (in 2013) and 34 local branches (5 branches in Tehran and 29
branches in main provinces), one Representative Office in Kazakhstan, a wholly owned bank in
Venezuela (Caracas), and a subsidiary partially owned bank in Belarus (Minsk). It offers a range
of financing products, including Buyer’s Credit, Supplier’s Credit, investment financing, credit
lines to foreign banks, working capital and import financing. It also offers guarantees to banks
and other beneficiaries.
The Bank is also forming partnerships with international banks and other financial institutions
to increase its access to international financial resources. EDBI has partnered with Islamic
Development Bank (IDB) and its affiliated institutions including International Islamic Trade
Finance Corporation (ITFC) to support Iranian importers and exporters. IDB approves
applications for finance through issuance of L/Cs and guarantees and ITFC has also provided
several credit lines. ICIEC has also provided insurance coverage for financing operations and
confirmation for import L/Cs.
Analysis:
As a deposit-taking institution, EDBI is under the supervision of the Central Bank of Iran.
Relative to staff size and capital base, its business volumes are relatively small. Its ownership of
banks in Venezuela and Belarus is not obviously in support of its mandate.