Iranian bank opens foreign letter of credit for import of goods from Russia

The Iranian bank Sepah has opened the first foreign letter of credit for the import of goods from Russia, Report informs via foreign media.

The amount of the letter of credit is €17 million (about $18.8 million), the information says.

A letter of credit is a banking service in which a financial institution acts as an intermediary and helps to conduct secure transactions. The buyer deposits the money and transfers the letter of credit to the seller, who, in order to receive payment for the product or service, fulfills the conditions established by the contract and provides the bank with supporting documents.