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Foreign banks to open €22bn LOC for Iran

Foreign banks to open €22bn LOC for Iran

TEHRAN: CBI Governor Seif said Lines of Credit (LOCs) worth 22 billion euros will be allocated to Iran in the near future for implementation of various projects. Valiollah Seif, Governor of the Central Bank of Iran, said Austria, Denmark, Italy and some other countries will open a 22-billion-euro line of credit for Iran in coming days. He recalled that a separate eight-billion-euro LOC has been recently signed with South Korea indicating that the measure would lead to further investment and a rise in production and employment. “Had it not been for the Joint Comprehensive Plan of Action (JCPOA), Iran would have never obtained these outstanding achievements,” he underlined. Seif later touched upon the process of unifying forex rates saying “the main objective pursued in unifying dual foreign exchange rates is to maintain stability in the country’s economy.” The official, while noting that the current multi-tier rates are bound to be unified, referred to certain considerations before the project is launched in order to avoid hasty decision makings.

CBI governor also stress the need to follow up compliance of Iran’s economic activities with international standards referring to adequate international banking ties as a necessary prerequisite to the process. “More than 750 broker relations have been formed following JCPOA implementation thanks to assistance provided by the Iranian Foreign Ministry,” he continued. The official stated that Central Bank of Iran was in talks with several foreign counterparts to open joint account in a bid to alleviate the need for foreign exchange in transactions. “No doubt, the American side has had breach of promise as regards the nuclear deal,” noted Seif adding “nevertheless, Iran’s banking relations have been promoted with the word and more favorable, though not ideal, conditions have emerged in the field.” He expected the US to feel more responsible and urged OFAC to immediately resolve ambiguities held by certain countries in conducting ties with the Iranian banking system.