Germany will resume providing guarantees for German exports to Iran in the near future, Asghar Fakhrieh Kashan, the Islamic Republic’s deputy transport minister said.

He said that negotiations were held with officials of the Germany’s economy ministry on the issue, Mehr news agency reported March 6.

It was agreed that Iran will pay its $560 million debts by June which will pave path to resuming Hermes cover, Fakhrieh Kashan said.

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. The export credit guarantees of the Federal Republic of Germany offer an array of insurance options which are mainly targeted at exports to developing countries and emerging markets.

Currently export companies in Germany trading with Iran, cannot be protected by state-Hermes coverage, due to the millions of dollars owed by Iranian companies.

According to Iran Custom Administration's statistics, Germany exported $1.43 billion worth of goods to Iran and imported $248 million from this country during 10 months of current Iranian fiscal year, which started on March 21, 2015.

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