farzad ghaisarian

Since the foreign investment usually involves transfer of capital to the host country for a relatively long period of time; It requires trust in a government that has the power of legislation in its own country and by implementation of that power the fate of investment can change. The stabilization clauses are set primarily to stabilize the investors’ situation and to avoid their vulnerability towards the host state. There are different types of these clauses through them Economic Equilibrium Clause has been welcomed in recent years and practically replaced the traditional forms of stabilization clause of investment contracts in many countries.It is noteworthy that the economic Equilibrium clause is inserted for the sake of maintenance of the economic balance of the contract, and on that basis, unlike the traditional types of stabilization conditions, the host governments can also benefited from it. In this article, along with evaluating the compliance of the economic equilibrium Clause with the criteria of administrative law and explaining its types Stipulated Economic Balancing Clause as the most efficient classification of this clause in practice will be described from the perspective of the authors.

Political risks are an important obstacle in the way of foreign investment and currency-related risks are one of the most important of these risks. Inconvertibility, non-transferability and exchange rate fluctuations are events that may severely affect the interests of foreign investors. Insurance coverage of these risks is a way to manage them and encourage foreign investors. The purpose of writing this article is to examine the possibility of insurance coverage of these risks and Iran's approach in this regard. Currency inconvertibility and non-transferability risks are among the risks covered by political risk insurance, but the risk of exchange rate fluctuations can hardly be considered as insurable risks. Based on this, the regulation called Regulation No. 70 regarding insurance coverage of exchange rate fluctuations by insurance companies has not been very successful Although it is over a decade that the exchange rate risk insurance has been posed in our legal system, it’s coverage in the form of regular insurance by insurance companies seems hard to accept due to the nature of this risk. Indeed, management of the risk by derivatives trough Strengthen required infrastructure or coverage of Export Guarantee Fund seems more procurable and homogeneous with global approach in this regards. In this essay, relying on the library method and with a descriptive and practical approach, an attempt has been made to delineate the concepts, introduce and explain the subject, especially with regard to the novelty of political risk insurance in the Iranian legal system.