Several Iranian banks have reconnected to electronic messaging network SWIFT, enabling the banks to resume letter of credit (L/C) transactions with foreign banks after the lifting of sanctions on Tehran, according to SWIFT.

Iranian banks have been barred from the SWIFT system under international sanctions for the past four years.

Slow start

Iran needs to resume L/C transactions so it can boost oil exports and regain market share lost during years of sanctions, but there are signs that many of the world's banks remain wary of doing business with their Iranian counterparts.

Since sanctions were lifted in January, only three cargoes with Iranian crude have so far been shipped to Europe.

On-boarding process

According to SWIFT, it has completed the on-boarding process and reconnected several Iranian banks but has not disclosed which ones.

However, Iran's Bank Sepah said it had been reconnected to SWIFT on 15 February 2016.

Remaining banks

Around 30 Iranian banks were blocked from using SWIFT's services under sanctions.

"We will continue to work with the remainder of the entities that have applied to rejoin SWIFT to ensure their smooth reconnection," SWIFT country manager, Onur Ozan, said in a statement published by the Iranian central bank.

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