Iran's Central Bank has announced that several Iranian banks have signed two separate financing deals with an Austrian and a Danish bank.

The deals with Austria's Oberbank and Danske Bank of Denmark are expected to boost letter of credit (L/C) business between Europe and Iran.

Bank participation

Oberbank is providing EUR 1 billion and Danske Bank EUR 500 million towards private and public projects in Iran. Fourteen Iranian banks are also participating in the financings.

According to Oberbank's general manager for global financial markets, Helmut Edlbauer, some of the Austrian bank's financing will take the form of L/Cs to facilitate trade.

Major projects

Oberbank's deal contemplates financing strategic projects including medical facilities, railways and several renewable energy projects.

The L/Cs will be made available to assist Austrian exporters enter the Iranian market.

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