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UAE Banks have stopped issuing letters of credit to Iranian companies

NCRI – Banks in the United Arab Emirates, the second-largest Arab economy, have stopped issuing letters of credit to Iranian companies, Bankers told Reuters.

"Because of the cloudy situation and possibility of sanctions, we are not issuing letters of credit on behalf of Iranian companies at the moment," said a Dubai-based official at the National Bank of Fujairah, who asked not to be identified.

"It’s happened over the last six months," the official said.

During a Middle East tour this week, U.S. President George W. Bush urged Persian Gulf states to confront Iran’s regime "before it is too late".

Banks in the Persian Gulf region are yielding to pressure to sever links with Iran’s regime as the United States pushes for tighter sanctions on Iran’s regime over its nuclear programme, Reuters added.