India' export guarantee agency has not stopped giving insurance cover to shipments to Iran and has only tightened criteria as part of a more cautious approach, official sources said on Friday, as Western sanctions make trade with Tehran tougher.
The sanctions imposed by the United States and European Union to deter Tehran from pursuing its nuclear programme are playing havoc with Iran's ability to pay for its imports, leaving global suppliers jittery about doing business with the Islamic republic.
About $3 billion in Iranian arrears in payments to India for imports have accumulated since December 2010 when a previous payment conduit was closed under pressure from Washington. Indian rice suppliers have also reported defaults by Iranian buyers.
"We have been very cautious for the past six months and will try to keep our exposure (to Iran) at the minimal level," said one source at the Export Credit Guarantee Corporation (ECGC), which covers the risk of Indian exporters selling on credit.
"But we have not halted cover to Iran exports."
Thomson Reuters 2012
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