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(Reuters) - Iran's Bank Parsian has stopped issuing payment guarantees for Iranian importers who buy Indian goods, because its account that was set up to skirt Western sanctions does not have the necessary funds in rupees.

"We have decided to stop opening letters of credit because we are committed to pay beneficiaries when they present (the shipping documents for) the goods," Bank Parsian's vice-president for international affairs, Mohajeri Tehrani, told Reuters by telephone from Tehran on Tuesday.

"From two, three months we are waiting to receive funds from them (Indian oil firms). But unfortunately they have not paid so far to our account with (India's) UCO Bank," Tehrani said.