Venezuela has so far opened letters of credit (L/Cs) worth US$10 million for private Iranian companies to create small-scale industries in the South American country, according to a senior official at Iran's Small-scale Industries and Industrial Townships Agency (SIITA).

The announcement follows a string of initiatives being pushed by Iranian government agencies to boost bilateral trade and investment opportunities with other countries using L/C backed schemes.

Industrial development

Deputy head of SIITA, Ali Zafarzadeh, recently told the official ILNA news agency that the entire cost of projects to transfer small-scale industry-related technologies to Venezuela has reached an estimated US$125 million. Purchase orders have been issued for US$40 million in these projects he added.

Zafarzadeh says several memoranda of understanding have been concluded by Iran and Venezuela on bilateral cooperation over small-scale industries. Iranian companies will construct 11 industrial townships in Venezuela he said.

L/C support

Iran has this year been particularly active in its support for L/C deals to boost bilateral trade and investment opportunities with other countries.

The Export Guarantee Fund of Iran (EGF) said it would provide cover to Pakistani exporters to Iran and cover against the risk of non-repayment of long- medium- and short-term credits extended by Iranian banks or exporters to Pakistani buyers. (DC World News, 8 August 2005).

Earlier in the year EGF announced it would provide cover for Iranian exports to Iraq (DC World News, 21 July 2005).

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