28 Dec Letter of credit Iran
ITALY, AUSTRIA, SWITZERLAND AND GERMANY ARE ABLE TO SIGN LC IRAN
Its been announced that four EU countries; Italy, Austria, Switzerland and Germany are able to sign a Letter of Credit for Iran, LC Iran.
Yet another barrier to do business in Iran appears to have fallen for LC Iran. Following the agreement between Iran and the Group 5+1 and implementation of the JCPOA in January 2016. International economic sanctions against Iran were removed. Today trade between the world and Iran often fails because of the banking sector. Governments are working to resolve those problems which limits further expansion and making it impossible to reconnect Iran to the global banking system. Both sides will benefit from those progresses implemented.
First progresses have been made in January. The removal of international banking restrictions. Never the less Tehran has secured links with only a limited number of smaller banks as US sanctions remain in force and large foreign institutions still fear potential fines. The administration of US President Barack Obama has tried to promote deeper international trade for Iran. However still limiting US business engagement due to sanctions that bar US banks from doing business with Iran. Also prevent transactions with Iran in dollars being processed through the US financial system.
Further achievements with LC Iran
Yet there has been another breakthrough as a result to the Joint Comprehensive Plan of Action (JCPOA) signed beginning of the year. It’s the announcement that four European countries; Italy, Austria, Switzerland and Germany will be able to sign Letter of Credits for Iran, LC Iran. Before sanctions have been lifted the percentage of transferring money with other countries has been between 3 to 8 percent. Now the expenses have reduced to less than half percent, according to Iran.
On Friday, Head of Australia’s Vorarlberg State Chamber of Commerce Helmut Steurer underlined the need for broadening of trade and banking relations with Iran. “I am certain that my country’s banks are willing for active presence in Iran,” Steurer told reporters. He underlined that the Austrian banks must open up branches in Iran. Steurer has recently visited Iran to attend a conference on Iran-Austria trade cooperation, and said, “There are some agreements for protecting joint investments between Iran and Austria which can serve as a good base for promotion of investments in the future.” The conference on Iran-Austria trade cooperation was held in Tehran on November 7.
Slowly but surely we are going back to a stable and successful trade relation with Iran. One of the last great untouched markets of the world. Italy, Austria, Switzerland and Germany are very prosper to be able to open Letter of Credits for Iran again – LC Iran.