26 August 2010
The state-run Industrial Bank of Korea (IBK) said it will provide special loans to small- and medium-sized businesses that do business with Iran to tide them over possible financial difficulties as a result of tighter US sanctions against Tehran over its nuclear program.
The US sanctions could make it harder for Korean firms to collect funds from Iran, Korea's biggest trading partner in the Middle East, Joongangdaily wrote.
Earlier, the US included the Seoul branch of the Iranian Bank Mellat on its sanctions list.
IBK will provide up to 300 million won ($255,000) worth of loans with one-year maturity to help companies suffering from delayed payments. The loans can be extended up to three years if necessary.
The bank will extend the grace period for bankruptcy proceedings from one to two months.
The Korea Federation of Small and Medium Business said that 32 percent of its members who have exported to Iran have ceased shipments there because of the US sanctions.
Following the June 9 UN Security Council resolution, the US and EU imposed unilateral sanctions against Iran over its nuclear program, mainly targeting the country's energy and banking sectors.
Washington will deny access to US markets for those companies that supply Tehran with refined petroleum products.
The EU measures include a ban on the sale of equipment, technology and services to Iran's energy sector, hitting activities in refining, liquefied natural gas, exploration and production. New investments in the energy sector are also banned.
Tehran has shrugged off the sanctions, saying it is capable of meeting its domestic gasoline needs by constructing new refineries and improving the existing ones.
The state-run Industrial Bank of Korea (IBK) said it will provide special loans to small- and medium-sized businesses that do business with Iran to tide them over possible financial difficulties as a result of tighter US sanctions against Tehran over its nuclear program.
The US sanctions could make it harder for Korean firms to collect funds from Iran, Korea's biggest trading partner in the Middle East, Joongangdaily wrote.
Earlier, the US included the Seoul branch of the Iranian Bank Mellat on its sanctions list.
IBK will provide up to 300 million won ($255,000) worth of loans with one-year maturity to help companies suffering from delayed payments. The loans can be extended up to three years if necessary.
The bank will extend the grace period for bankruptcy proceedings from one to two months.
The Korea Federation of Small and Medium Business said that 32 percent of its members who have exported to Iran have ceased shipments there because of the US sanctions.
Following the June 9 UN Security Council resolution, the US and EU imposed unilateral sanctions against Iran over its nuclear program, mainly targeting the country's energy and banking sectors.
Washington will deny access to US markets for those companies that supply Tehran with refined petroleum products.
The EU measures include a ban on the sale of equipment, technology and services to Iran's energy sector, hitting activities in refining, liquefied natural gas, exploration and production. New investments in the energy sector are also banned.
Tehran has shrugged off the sanctions, saying it is capable of meeting its domestic gasoline needs by constructing new refineries and improving the existing ones.
© Iran Daily 2010
