Date: 04 Mar 2000
Time: 17:47:08
Remote Name: 24.30.137.96
03/04/2000 Dow Jones International News (Copyright (c) 2000, Dow Jones & Company, Inc.)
TOKYO (Nikkei)--The Ministry of International Trade and Industry has decided to provide medium- to long-term trade insurance to cover about Y6 billion worth of export orders that NEC Corp. (J.NEC or 6701) and Sumitomo Corp. (J.SUT or 8053) have jointly won from Iran , The Nihon Keizai Shimbun reported in its Sunday edition, citing ministry officials.
The decision was prompted largely by the improved economic conditions in Iran caused by a rise in crude oil prices.
NEC and Sumitomo are set to export switchboards and other equipment to an Iranian state-owned telecommunications firm.
Early this year, MITI issued trade insurance for exports to Iran for the first time in eight years, but the coverage was less than Y1 billion. "Raising the coverage to Y6 billion will truly signify that Japan has resumed trade insurance for Iranian projects," said a MITI official.
MITI stopped providing trade insurance to Iran in 1992 because of delays in Iran 's repayments of its debt to Japan and the deteriorating relations between the U.S. and Iran . The ministry judged that its resumption of trade insurance would cause little friction to Japan-U.S. relations now that there are signs of improvements in U.S.- Iranian ties.
France has already restarted trade insurance for Iran , and there have been growing calls in Japanese business circles for Japan to follow suit.