MEASURES imposed by the EU and the US have made food delivery to Iran more difficult over the past two years as banking sanctions complicate deals and trade financiers reduce their exposure.
Lack of letters of credit thwarts food delivery to Iranian portsMEASURES imposed by the EU and the US have made food delivery to Iran more difficult over the past two years as banking sanctions complicate deals and trade financiers reduce their exposure.
Payment problems are disrupting commercial food cargoes to Iran, with hundreds of thousands of tonnes of grain and sugar stuck in transit, Reuters reports.
Ships carrying grain, including wheat and soybeans, as well as raw sugar, have been stuck for several weeks outside Iranian cargo ports such as Bandar Imam Khomeini and Bandar Abbas.
Iranian officials acknowledged to Reuters that there are import problems, notably due to reluctance among international banks.
"There are problems getting paid on deals and Iran looks to be struggling on the trade finance side," said one European trade sourceGetting letters of credit, vital to the smooth delivery of goods is difficult. "As soon as the banks see the word 'Iran' in the paperwork, you get it rejected," said another source.
Reuters ship tracking data shows that five panamaxes, each with 60,000 to 70,000 tonnes of grain, reached Iran in early April. They were there on May 9, weeks after they should discharged cargo.