There are mixed reports regarding letter of credit (L/C) availability in Iran.

The chief executive of Iran's Shahid Bahonar Copper Industries (SBCI) told the Reuters news agency that the company expects to be able to issue L/Cs through a European bank to international trade partners within months.

But a member of Iran's Chamber of Commerce has complained about the lack of L/Cs, despite the country's reconnection to SWIFT, saying his company still has difficulty in using the global messaging system for trade with the much of the rest of the world.

Banks willing

"One European bank will be ready to start issuing L/Cs for us within months. We are finalising negotiations now," SBCI's chief executive, Ali Amini Kafiabad said recently.

"During the sanctions we could not open or receive L/Cs for suppliers and from clients. We have to pay cash."

Difficulties remain

But speaking to the Tasnim News Agency, Chamber of Commerce member, Majid Movafeq Qadiri, said his company could still not open L/Cs for raw material imports from Argentina, Brazil, Australia, Kazakhstan and Ukraine.

Qadiri reckons that so far, no major breakthrough in terms of L/C availability has been made and difficulties with financial transactions remain.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.