Tuesday, August 14, 2012

Finmin tells PSBs not to stop loans for shipments via Iran

The finance ministry has directed the Public Sector Banks (PSBs) to continue providing loans and banking facilities to exporters, whose shipments are passing through the ports of Iran for onward shipment to other countries. This move is intended to prevent the newly imposed US sanctions on Iran from impacting country's trade as a lot of exporters use Iranian ports as transit point for onward movement of goods to the markets in the Middle East and CIS countries. Except the state-owned UCO Bank, other PSBs cannot do business with Iranian companies, or with Indian companies having commercial dealings with Iran, as fallout of sanctions imposed by the US on Iran. But PSBs have also been denying credit facilities to even those exporters who use the Iran ports such as Bandar Abbas as
a transit point. The official sources have said that the department of financial services has directed
banks to provide seamless credit services and other facilities to such exporters. Exporters use
Iran as a transit point for sending shipments to many other countries such as Afghanistan.

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