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Our Bureau

Mumbai , Dec. 19

THE Exim Bank has extended a fourth short-term Line of Credit of $15 million to six Iranian commercial banks, to finance India's exports to Iran.

Under this facility, Exim Bank will reimburse Indian exporters 100 per cent value of letters of credit opened by any one of the six Iranian banks.

The banks are Bank of Melli Iran, Bank Mellat, Bank Tejarat, Bank Sepah and Industry and Mine Bank and approved by Bank Markazi and Exim Bank. Iranian importers have been given one-year credit facility.

In addition, Exim Bank has also in place, a medium-term LC facility of $200 million for export of capital goods, projects and related services to Iran. A contract for $103 million has already been approved under this facility.

Iran is emerging as a major market for Indian goods and services. Exports to Iran rose by 32 per cent to $1215 million.

Major items included petroleum products, primary and semi-finished iron and steel, machinery and instruments, drugs, pharmaceuticals and fine chemicals and processed minerals.

This is the fourth short-term Line of Credit extended by the Exim Bank to Iranian banks. The first two Line of Credits aggregating to $35 million have been fully utilised and the third one of $15 million has so far been utilised to the extent of $13 million.

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