Iranian bank providing advances to exporters, credits for foreign buyers
Tehran, Iran, Oct.1
The Export Development Bank of Iran is providing advances to exporters and credit for foreign buyers, the head of the bank, Ali Salehabadi told Trend.
"Considering the preferred interest rate from Export Development Bank, the exporters should repay the advances on time and are obligated to provide valid documents including customs papers, to build trust," he said.
"On the other hand, one of the important competitive advantages of the bank, is foreign currency advance. Banks are not inclined to provide foreign currency advances to exports due to low rates of foreign currency advances and its high risk. In this regard, the Export Development Bank exclusively provides buyer credit to support exports," he added.
"The credit advances will be provided to foreign buyers of Iranian goods and services in return for sufficient guarantee, in other words , the foreign buyer is the one that obtain advances not the Iranian exporter, and the foreign buyer would repay the advance," he said.
"The financing is provided within the framework of Monetary Council instructions for exports. Based on the instructions, the repayment duration for consumption goods is two years minimum, while it is five years for capital goods, however it can be increased to seven years. The payment channel is also determined by cooperation with a foreign side, via various brokerages," he indicated.
The official has emphasized that the volume of advances paid by the bank to exporters from the start of the current Iranian year (started March 21, 2019) until August 11 was 29,740 billion rials (around $7 million).