CBI Tweaks FTZ Rules

In its latest directive to the banking system, the Central Bank of Iran has amended regulations related to conditions based on which letters of credit and negotiable instruments are issued in free trade zones. “Sight letters of credit and negotiable instruments to import goods and services to FTZs, which was previously issued strictly after receiving 100% of the foreign exchange value of the L/C or negotiable instrument as guarantee, will now be opened by receiving at least 30% of the value of L/C or negotiable instrument as prepayment in open market rates,” reads the directive as reported by the official website of CBI. However, the policymaker stresses that “credible and sufficient collaterals” must be received from the applicant to ensure the prompt clearance of the balance of payment.