A senior Iranian banker has said that letter of credit (L/C) business at Iran's Bank Mellat is on the increase.

This contrasts starkly with most reports that suggest that L/C business between Iran and the rest of the world is under substantial pressure.

Banker's claims

Bank Mellat is opening an increasing number of L/Cs, according to its chairman and managing director, Ali Divandari.

He made the claim to the news agency, Reuters, despite complaints from the Iranian business community that L/Cs opened by Iranian banks are increasingly refused by foreign suppliers.

Contradictory reports

According to Reuters, Iranian executives continue to say they now make direct transfers rather than opening L/Cs.

The list of foreign banks willing to deal in Iranian L/Cs is also getting shorter by the month, according to the report.

No cooperation

US banks and most major European financial institutions have ceased their cooperation with Iran.

Global banking giants such as HSBC, UBS and Credit Suisse were the first to sever ties with Iran last year. Financial institutions such as Deutsche Bank, Commerzbank and BNP Paribas have followed suit this year.

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