Japan to offer Iran trade insurance

Published October 29th, 2000 - 02:00 GMT

Japan's government plans to provide Iran with trade insurance to cover export orders worth around $560 million during President Mohammad Khatami's visit here next week, a report said Saturday. The deal is designed to back up four export projects worth 60 billion yen ($555.5 million), including the shipment of a petrochemical plant to Iran, the Nihon Keizai Shimbun reported. 


Export insurance, run by the trade ministry, helps trading companies cover some of their shipment losses by providing them with compensation. The decision is part of a Japanese bid to boost bilateral ties and secure a steady supply of oil from Iran amid growing concerns over future supply, the newspaper said. 


Prime Minister Yoshiro Mori will present the plan to Khatami at their summit meeting during the Iranian leader's four-day visit starting Tuesday, the business daily said. The duo is also expected to draw up plans to boost Japan's private investments in Iran and to cement technological cooperation. 


Tokyo also announced Thursday it was extending a $69 million loan to help complete an Iranian power project. — (AFP, Tokyo) 


© Agence France Presse 2000

© 2000 Mena Report (www.menareport.com)

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