Identifier
Created
Classification
Origin
07VIENNA2453
2007-09-20 10:11:00
CONFIDENTIAL
Embassy Vienna
Cable title:
AUSTRIA SCRUTINIZING LETTERS OF CREDITS FOR
how-toVZCZCXYZ0003 RR RUEHWEB DE RUEHVI #2453 2631011 ZNY CCCCC ZZH R 201011Z SEP 07 FM AMEMBASSY VIENNA TO RUEHC/SECSTATE WASHDC 8617 INFO RUEATRS/DEPT OF TREASURY WASHDC
C O N F I D E N T I A L VIENNA 002453
SIPDIS
SIPDIS
E.O. 12958: DECL: 09/20/2017
TAGS: EFIN ETRD ETTC PREL IR AU
SUBJECT: AUSTRIA SCRUTINIZING LETTERS OF CREDITS FOR
IRANIAN TRADE (C)
Classified By: Economic and Political Counselor Dean Yap
for reasons 1.4 (b) and (d)
(S) On September 19, Helmut Krehlik, Head of the Export and
Import Control Division in the Ministry of Economics told
EconPol Counselor and EconUnit Chief that Austrian commercial
banks are now required to submit all requests for letters of
credits to finance exports to Iran to the MoE for approval.
The GoA's export guarantee entity, the Kontrollbank, has
recently instituted this procedure in an effort to ensure
that no exports to sanctioned firms inadvertently receive
financing. In addition, Krehlik noted that the new
requirement greatly decreases the likelihood that an Austrian
bank would provide financing for a licensable item.
According to Krehlik, Austrian banks did not previously have
the technical competency or willingness to identify
licensable exports. Krehlik welcomed the new measure, but
lamented that his division's workload had tripled since the
new system began.
McCaw
SIPDIS
SIPDIS
E.O. 12958: DECL: 09/20/2017
TAGS: EFIN ETRD ETTC PREL IR AU
SUBJECT: AUSTRIA SCRUTINIZING LETTERS OF CREDITS FOR
IRANIAN TRADE (C)
Classified By: Economic and Political Counselor Dean Yap
for reasons 1.4 (b) and (d)
(S) On September 19, Helmut Krehlik, Head of the Export and
Import Control Division in the Ministry of Economics told
EconPol Counselor and EconUnit Chief that Austrian commercial
banks are now required to submit all requests for letters of
credits to finance exports to Iran to the MoE for approval.
The GoA's export guarantee entity, the Kontrollbank, has
recently instituted this procedure in an effort to ensure
that no exports to sanctioned firms inadvertently receive
financing. In addition, Krehlik noted that the new
requirement greatly decreases the likelihood that an Austrian
bank would provide financing for a licensable item.
According to Krehlik, Austrian banks did not previously have
the technical competency or willingness to identify
licensable exports. Krehlik welcomed the new measure, but
lamented that his division's workload had tripled since the
new system began.
McCaw