Romanian importers should find it easier to open letters of credit (L/Cs) for purchases from Iranian exporters if they use a scheme devised by the Export Development Bank of Iran (EDBI) and EXIM Bank of Romania.

The scheme is the first in a series of facilities planned to boost trade between the two countries.

Compulsory L/Cs

In this scheme, EDBI has allocated a 5 million Euros credit to EXIM Bank of Romania to support the purchase of Iranian goods by Romanianbuyers.

Buyers participating in the scheme can tap into the credit to fund up to 85 per cent of the cost of their purchases but, under the terms of scheme, these imports must be made on L/C terms.

More guaranteed

Iran's Export Guarantee Fund will provide insurance cover for Iranian exporters participating in the scheme.

According to a top EDBI official, the short-term credit line in this scheme will probably be complemented later by medium- and long-term facilities under an overall credit line extended to 50 million Euros.

The views in this article are those of the author and not necessarily those of ICC or the other partners in DC-PRO.