Iranian Rial

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An International Monetary Fund (IMF) staff report says that economic conditions are improving substantially in Iran following the implementation of Joint Comprehensive Plan of Action (JCPOA).

The IMF report was released on Monday and was compiled from the preliminary findings of an official visit to Iran. The report expressed views of IMF staff members and may not reflect the views of its executive board.

“Real GDP rebounded strongly over the first half of the year as sanctions eased post-JCPOA implementation. Oil production and exports rebounded quickly to pre-sanction levels, helping cushion the impact of low global oil prices. Increased activity in agriculture, auto production, trade and transport services has led the recovery in growth in the non-oil sector,” said the report.

It added that Iran’s GDP is projected to grow by at least 4.5 percent in 2016-17, and that monetary and fiscal policies adopted over the past few years and favorable international food prices have decreased the inflation rate in the country.

It also noted that the Central Bank of Iran has over the past year taken significant measures aimed at restructuring and bringing unlicensed financial institutions (UFIs) under its regulation. The IMF staff report highlighted that such moves help address an important source of financial instability.

The JCPOA, struck between Iran and Britain, China, France, Germany, Russia and the United States in July 2015, envisaged Tehran scaling back its nuclear program in return for the removal of all nuclear-related sanctions on the Islamic Republic. 

 

Even ent the imf predict a prosperous year with their recent report talking about unification of rates!

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Germany and Iran have signed a range of business deals in what is expected to take economic relations between the two countries to a new level.  

The German Economy Ministry announced in a statement that several Mittelstand firms, the small-to-medium-sized companies that form the backbone of the economy, had signed the deals with their Iranian partners during a landmark visit to Tehran by Vice Chancellor and Economy Minister Sigmar Gabriel. 

On the same front, Reuters reported that Mitsubishi Germany signed a contract to modernize a gas-fired plant, while plant constructor Keller HCW sealed an agreement to build a brickyard in Iran. Others that signed deals in Tehran included SMS group, a builder of steelmaking plants and INTRA industrial solutions, Reuters quoted the German Economy Ministry as announcing in its statement.

The central banks of Iran and Germany also agreed on technical co-operation, Reuters added. There was no detail on the size of the agreed deals.

Gabriel – who is heading a 160-strong business delegation to Tehran - had earlier emphasized that Germany wants to help Iran push ahead with reforms, and promised to remind the United States of its commitment to reduce sanctions against Iran.

This is Gabriel’s second visit to Iran since the country reached a deal in July last year to restrict certain aspects of its nuclear energy activities in return for the removal of some economic sanctions that had been imposed on it for several years.

Industrial giant Siemens AG and automaker Daimler AG are expected to be the first German firms to benefit from opportunities in Iran after the removal of the sanctions, Reuters said. Nevertheless, they are proceeding carefully and only after legal reviews.

The German banking sector has been reluctant to underwrite business deals for fear of falling foul of remaining US sanctions imposed on Iran.

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Germany has promised to exercise pressure on the United States to act on its commitment of “effectively” removing sanctions against Iran.

Germany wanted to “remind the United States of the commitment to get to an effective dismantling of sanctions,” German Vice Chancellor and Economy Minister Sigmar Gabriel said at the opening of an economic forum in Tehran on Monday.

He arrived in the Iranian capital on Sunday for a two-day visit at the head of a business delegation comprising 160 industry representatives, including agents from German giants such as Siemens and Volkswagen.

Germany had for decades been Iran’s biggest European trading partner before a series of sanctions were tightened against the Islamic Republic under the pretext of its nuclear program.

Almost immediately after Iran’s nuclear deal with world powers, which had been struck late last year, the German government sent Gabriel to Tehran at the head of a major delegation to discuss post-sanctions business opportunities in the Islamic Republic.

Under the nuclear deal, the Islamic Republic has agreed to roll back certain aspects of its nuclear program and has provided international atomic monitors enhanced access to its nuclear facilities. In return, Iran’s partners agreed to terminate all nuclear-related sanctions against Iran.

Despite the deal, some international banks still shy away from financing trade deals and processing transactions with Iran fearing US penalties.

Speaking in Tehran, Gabriel said, “Iranian banks should find ways for the expansion of relations. In this context, the US, too, should act on its responsibilities concerning Iran so the outcome of the nuclear deal becomes visible in Iran.”

“Besides the matters that separate Iran and Germany, there are elements for connection,” he said, noting, “Through the expansion of economic cooperation, we can also find approaches toward [accommodating] the complicated issues between the two countries.”

The countries’ respective central banks are due to sign a cooperation agreement later in the day.

Iran’s Deputy Economy Minister Mohammad Khaza’ei, meanwhile, said 10 economic agreements would be signed during Gabriel’s visit.

Gabriel had angered the Iranian public as well as officials by saying, prior to his trip, that Berlin and Tehran could have “normalized” relations only when the Islamic Republic recognized the Israeli regime.

Iranian officials, including Foreign Minister Mohammad Javad Zarif, said no country could set preconditions for the development of ties with Iran, rejecting Gabriel’s remarks.

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Speaking in Tehran, Gabriel said, “Iranian banks should find ways for the expansion of relations. In this context, the US, too, should act on its responsibilities concerning Iran so the outcome of the nuclear deal becomes visible in Iran.”

“Besides the matters that separate Iran and Germany, there are elements for connection,” he said, noting, “Through the expansion of economic cooperation, we can also find approaches toward [accommodating] the complicated issues between the two countries.”

 

this is says it all......alternate payment systems for conducting transactions and settling accounts!

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Tuesday, October 04, 2016

Banks to Offer NDFI Forex Services

 

Several banks and credit institutions have been chosen as agent banks for offering forex services by the National Development Fund of Iran estimated to be worth over $23 billion.

Ahmad Doust-Hosseini, the fund’s director, announced the news, adding that on average, 20% of all earnings from Iran’s crude oil sales are deposited with the wealth fund.

In late August, the Export Development Bank of Iran said that it is holding talks with the NDFI to open a $1 billion credit line to boost exports and offshore construction schemes.

 Furthermore, as per the Budget Law of 2014-15, it was decreed that 10% of the incoming resources to the NDFI are allowed to be used as loans allocated to the agriculture sector and another 10% to the industries sector.

Doust-Hosseini added that at the moment, the NDFI’s forex resources are in the neighborhood of $68 billion.

Doust-Hosseini – a former deputy minister of industries, mining and trade and a former board member at Tehran Chamber of Commerce, Industries and Mining – was appointed in early August by President Hassan Rouhani. He took the job after the former head of the fund and all its board members resigned in the aftermath of salary scandal that cost many officials their jobs.  The rainy day fund was created in 2011 to use a portion of surplus revenues from crude oil exports for investment in long-term projects.

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Tuesday, October 04, 2016

Monetary Vs. Fiscal Policies: A Separation

 

Mohammad Affianian

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Finance Desk

Monetary policy has once again taken center stage. From the controversy engulfing the ultra-low rates championed by the European Central Bank (ECB) to Donald Trump accusing Janet Yellen, the chair of Federal Reserve of being politically biased, central banks have found themselves in the limelight like never before.

Truth be told, since the financial crisis of 2007-08, the Federal Reserve and other major central banks have mostly borne the brunt of the catastrophe and indeed done much to alleviate it. They slashed rates to historic lows and embarked on a massive quantitative easing (QE) to prevent the recession turning into a depression.

Ironically, the issue of central banking has also found its way into the mainstream economic dialogue in Iranian circles. The government has prepared a new central bank bill that will go to parliament soon, to replace a  law half century old.

However, unlike the debate in the advanced economies, which swirls around the fact that central banks have become too powerful and undemocratic, the question here is to grant some much-needed independence to the Central Bank of Iran, which prior to the Rouhani administration could barely claim a voice for itself. In a rare feat, the CBI has asked the public to air its views on  improving the law.  

The bill in question, hailed by the government and the CBI as the solution par excellence for sloppy policymaking of the past, has indeed some very good features. Article 14, for instance, states in no uncertain terms that “providing loans (read aid) to ministries, government institutions and their affiliates or guaranteeing their financial transactions” would be illegal.  If enacted, this article would be a revolutionary change in Iranian politico-economic affairs, given how easily previous governments siphoned off CBI resources to fund their costly pork-barrel projects, or worse, ordered the CBI printing machines to bail them out.

 Alls Not Fine

A further perusal of the document, however, reveals some surprising discrepancies. Article 14 designates as a “duty of the CBI” to act as the government’s agent when it comes to issuing bonds and securities. That, according to analysts, is step backward in the direction of promoting independence for the regulator because in most parts of the world that falls into the ambit of the economy ministry and not the central bank.  

Another positive provision, which prohibits the CBI from purchasing government bonds when first issued, is negatively offset by Article 2 that says it is for the CBI to “determine” the exchange rate for the rial against other currencies. Economists opine that this phenomenon would be considered an anomaly in advanced economies.

Another outrageous point in the bill is the old and tiring tale of appointing the CBI head, which still should be undertaken by the cabinet and ultimately approved by the president. Although the new bill curbs the power of the president in sacking the central bank chief, it still allows him to remove the him/her from office in the penultimate year of his tenure -- 5 years. Given that presidential terms are four years in Iran, this would mean that any new president can install a new CBI boss should the incumbent not see eye to eye with him.

Practice What You Preach

While the changes in the bill are praiseworthy, it still leaves much room to be desired. Indeed more is expected from the government of President Hassan Rouhani, which prides itself on its commitment to monetary and fiscal disciple and the rule of law. The government has a historic opportunity to leave behind a legacy by addressing this issue once and for all. It was through this very adherence to disciplined policymaking that it succeeded to bring down the inflation to single figures for the first time in three decades.

There are already worrying signs that this positive trend (less inflation) is in trouble. Broad money supply is surging again after declining considerably in 2014.And although the double-digit inflation has not showed up yet, it is likely that it would rear its ugly head again.

As a growing chorus of pundits sound the alarm for the government to get back to the basics of wise and workable decision-making, it is important for the government to also realize that it successors may not necessarily be big fans of monetary discipline.

In sum, it is only with the separation of fiscal and monetary policymaking enshrined in the sanctity of law that the rule of law can and must be guaranteed for generations to come.           

 

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President Hassan Rouhani enacted the law for Iran’s membership in the Asian Infrastructural Investment Bank to the Ministry of Finance and Economic Affairs on Monday. The declaration comes after lawmakers approved the proposal in late August, IRNA reported. According to the law, the government is permitted to purchase 15,808 shares of AIIB worth $1.58 billion. Strengthening relations with Asian countries, through infrastructure development is said to be Iran’s main goal for joining the bank. The China-based AIIB started work in mid-January 2016. The international financial institution proposed by China will invest in Asia-Pacific infrastructure projects and is widely regarded as a rival to western-based institutions such as IMF and the Washington-based World Bank.

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German firms have signed 10 business agreements with Iranian partners during the fifth session of Iran-Germany Economic Commission in Tehran on Monday.

The European country’s Vice Chancellor and Economy Minister Sigmar Gabriel and his Iranian counterpart Ali Tayyebnia attended the session.

Several German Mittelstand firms, the small- to medium-sized companies that form the backbone of the economy, had signed deals with Iranian partners, including SMS group, a builder of steelmaking plants and INTRA industrial solutions, Reuters cited German Economy Ministry as saying.

Mitsubishi Germany signed a contract to modernize a gas-fired plant, while plant constructor Keller HCW wants to build a brickyard in Iran.

Both countries’ central banks have also agreed to a technical cooperation deal. There was no detail on the size of the agreed deals.

Industrial giant Siemens AG and automaker Daimler will be among the first German firms to benefit from opportunities in Iran, but they are proceeding carefully and only after legal reviews.

The German banking sector has been reluctant to underwrite business deals for fear of falling foul of remaining US sanctions imposed on Iran over non-nuclear issues.

 Reminder to the US

Speaking at the opening of an economic forum at Iran Chamber of Commerce, Industries, Mines and Agriculture headquarters in Tehran on Monday, Gabriel said Germany wanted to “remind the United States of the commitment to get to an effective dismantling of sanctions”.  

“Germany wants to help Iran push ahead with reforms,” he said, adding that he believed the Islamic Republic was a reliable credit partner.

“Our aim is to support the current government with its path to opening up to the world.”

The visiting German minister stressed, “Iran was a reliable credit partner that kept agreements as a rule.”

“Iranians have always thought highly of German people,” said the head of ICCIMA, Gholamhossein Shafei, adding that his country is after improved economic, cultural and technologic relations with the European country.

 The Balancing Act

As many as 37 business representatives from prominent German companies, including Siemens AG and Volkswagen, accompanied the minister on the flight to Iran and more joined him once the plane landed in Tehran, Deutsche Welle reported.  

Another 37 journalists will be on hand to record how the minister, who is also the head of Social Democrats, manages a 48-hour balancing act.

The purpose of the trip is to “position the German economy one year on from the nuclear agreement”, said Rudolf Gridl, who specializes in the Middle East and North Africa at the Economy Ministry. “We are very confident that contracts or letters of intent will be signed.”

Germany’s relations with Iran have changed dramatically in the past year. After years of Iran’s economic sanctions, negotiations between Iran and the five permanent members of the UN Security Council (Russia, China, the United States, France and Britain) plus Germany succeeded in a wide-reaching easing of sanctions in return for the country’s pledge to scale back its nuclear program and submit to international inspections.

Once the agreement was reached, Gabriel became the first EU minister to visit Iran and other German politicians have been quick to revive the previously good relations between the two countries.

“There’s a very large interest from the German side,” Gridl said. “All the German federal states have already sent delegations separate from this trip happening now.”

The main lingering problem is that the United States has only partly relaxed its sanctions. Iran can export oil and gas again, as well as access long-frozen assets, but a US embargo remains in place. That makes international banks and business, including some in Germany and France, hesitant to invest in Iran.

A dozen years of sanctions have resulted in Iran’s banks lagging behind international standards.

“The federal government tries to provide Iran technical help with regard to bringing its banking sector up to speed,” Gridl said.

There are high expectations, especially in the power, transport and health care industries. Many of Iran’s hospitals are dilapidated and require international knowhow.

 Bilateral Trade

Managing Director of Iran-Germany Chamber of Industry and Commerce Rene Harum said trade between the two countries is expected to reach €5 billion in 2017 and €10 billion in the coming years.

Speaking at the first meeting of the joint chamber in Tehran last week, Harum said bilateral trade stood at €2.5 billion in 2015, IRNA reported.  

He said Germany is willing to become Iran’s top trading partner, replacing China whose trade with Iran topped $22 billion in the last Iranian year (March 2015-16).

According to the Islamic Republic of Iran Customs Administration, trade between Iran and Germany stood at $2.13 billion in the last Iranian year, down 25% over the previous year.

IRICA’s latest stats show bilateral trade is already witnessing a rebound.

Iran exported 10,400 tons of non-oil goods, worth $87 million to Germany in the first four months of the current Iranian year (started March 20), registering a %1.4 increase compared with last year’s corresponding period.

Pistachios, carpet, caviar, saffron and dates were among the main exports.

More than 419,000 tons of goods valued at $671.3 million were imported from the European country during the same four-month period, indicating an 18% rise year-on-year. Imports mainly included industrial machinery, grain, pharmaceuticals and steel products.

 

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Deutsche Bank Storm Escalates

 

Awar of words has escalated surrounding the troubled German lender Deutsche Bank between its supporters and those claiming the bank has no one to blame for its plummeting share price and difficulties but itself.

Deutsche Bank was embroiled in a market storm last week over concerns the lender did not have enough funds to cover a reported US Department of Justice demand for $14 billion to settle claims that it had sold toxic mortgage-backed securities before the global financial crisis, CNBC reported.

German Economy Minister and Vice Chancellor Sigmar Gabriel hit back at Deutsche Bank Chief Executive John Cryan for telling employees his bank was suffering from market speculation, saying on Sunday that a bank that makes speculation its business should not complain about speculators.

“I didn’t know whether I should laugh or be furious that a bank which turned speculation into a business model now declares itself the victim of speculators,” he told reporters on a plane to Iran, which he is visiting with a business delegation, Reuters reported.

In the German media, politicians have accused the US of waging an “economic war” against the lender while several chief executives of DAX-listed companies–including Daimler, TUI, Siemens, Munich Re and Eon, expressing their support for Deutsche Bank.

German media have also focused this weekend on the fact that Chancellor Angela Merkel cannot afford politically to bail out the bank given her tough stance towards other banking bailouts in other eurozone countries.

Deutsche Bank’s luck appeared to turn by Friday, however, as its US-listed shares jumped 14% after the AFP news agency, citing a source, reported that the bank could be near a lower, $5.4 billion settlement with the DOJ.

CNBC could not independently confirm the report and hopes of a settlement quickly began to fade, not least because if a new agreement been reached, German law requires banks to formally disclose the details immediately.

This week, markets will be watching for any more news on possible settlement talks. German newspaper Frankfurter Allgemeine Zeitung reported at the weekend that Deutsche’s CEO John Cryan would be in Washington this week for annual IMF and World Bank meetings, and other senior Deutsche Bank executives would join him to negotiate a settlement with US authorities.

There is a widespread belief that the bank wants to get a deal done before the administration changes after the November 8 election.

In another separate blow for the bank, 13 past and present executives from Deutsche Bank, Banca Monte dei Paschi di Siena and Nomura have been ordered to stand trial for a number of alleged financial crimes relating to complex derivatives transactions. All those indicted have previously denied any wrongdoing, Reuters reported.

 

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When does irans fiscal year start? October 1st? Hope iran also wants to get deal done before elections!

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high-ranking delegation from France’s Peugeot-Citroen (PSA Group) will visit Iran this week to launch the “executive phase” of the new joint venture with Iran Khodro Company, known as IKAP.

During the one-day visit, the first meeting of the company’s board of directors will be held with the French board, Khabar Khodro reported.

The French delegation will also tour the factory site where the new cars will be manufactured. They will also visit an after-sales center.

The visit is expected to accelerate the production process of new cars, specifically Peugeot 2008, 208 and 301.    

The two companies signed a joint venture in January. The first meeting of the assembly of founders was held early in summer.  

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Things that make you go hmmmm.

so I read an article the last couple of days i think it was about the European Union ratifying or approving the Paris accord or Paris agreememt, they say it's about climate control but have also read it's about currency...linking countries omissions to their GDP!

 

then I find this! Old but relevant!

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Louvre Accord

Page issues

The Louvre Accord was an agreement, signed on February 22, 1987 in Paris, that aimed to stabilize the international currency markets and halt the continued decline of the US Dollarcaused by the Plaza Accord.^[1] The agreement was signed by France, West Germany, Japan, Canada, the United States and the United Kingdom.^[1] The Italian government was invited to sign the agreement but declined.^[1]

 

 

 

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So is the new Paris agreement about the euro or usd?

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http://www.reuters.com/article/us-china-climatechange-idUSKCN11901W

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Opinion piece!

http://www.thedailybeast.com/articles/2015/12/14/is-the-paris-agreement-an-amazing-achievement-or-a-disaster.html

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News ID: 3785947 - Mon 3 October 2016 - 14:16

Economy

TEHRAN, Oct. 03 (MNA) – German Economy Minister Sigmar Gabriel has reported on the signing of an MoU between central banks of Iran and Germany.

Speaking at the German-Iranian Business Council meeting held in Tehran on Monday morning at Iran’s Chamber of Commerce, the German minister said representatives of 100 firms, including Siemens and Volkswagen, are present in his accompanying delegation.

Sigmar Gabriel also pointed to the presence of small and medium-sized businesses in the trade delegation saying “though not well-known, these firms follow the latest trend in science and technology to conduct vast activities inside Germany.”

The visiting official, while voicing satisfaction towards his presence in Tehran as a sign of trade interaction between Iran and Germany, said attention should not be only paid to major companies since smaller firms also possess precious capabilities for various sectors.

Gabriel noted that the Joint Economic Commission session between the two sides is going to be held after 15 years of hiatus; “now, good relations of the past can become reinvigorated and I appreciate all companies who refused to halt their cooperation despite sanctions and political barriers.”

He said German delegations are eager to see Iran’s economic policies move along with international policies adding “dynamic and progressive economy can advance well and devote the proceeds to welfare of the people.”

The German economy minister recognized the existence of major difference between Iranian and West European policies while emphasizing that all these gaps can be talked over.

The official pointed to the disagreements between the two sides over issues of Israel and Palestine noting “good relations between Iran and Germany pave the ground for negotiating even complex issues.”

Sigmar Gabriel further enumerated possible venues for cooperation between the two countries including renewable energy, health, infrastructure as well as water and environmental technologies; “German firms are not merely seeking profit as their priority is to transfer technology and to exploit capabilities of Iran.”

“Germans are taking steps towards educating Iran’s younger generation since they attach great importance to vocational training,” highlighted the official voicing his country’s readiness to establish vocational centers inside Iran.

Economy minister of Germany referred to the launch of the first vocational center by Germans in Iran expressing hope that the tradition will continue.

Sigmar Gabriel, while touching upon the case of German Euler Hermes credit institution, said “meetings were held between representatives of Iran and Germany to find appropriate solutions to banking problems since we seek to observe tangible outcomes of the nuclear deal.”

“Today, a Memorandum of Understanding (MoU) for banking cooperation will be inked between central banks of the two sides,” he maintained.

He underscored that Germany wants to help Iran push ahead with reforms adding he believed the Islamic Republic was a reliable credit partner as he courted closer trade ties.

"Our aim is to support the current government with its path to opening up to the world," said Gabriel who has flown to Iran for a two-day visit with a planeful of executives who are keen to rebuild trade.

 

HA/2229823

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TEHRAN, Oct. 03 (MNA) – An official at NIOC said Iran has begun crude sales to British companies as the first one-million-barrel shipment was delivered to British Petroleum.

Seyyed Mohsen Ghamsari touched upon resumption of oil exports to British firms in the post-JCPOA era saying “so far, two crude oil and gas condensate cargos have been sold to two companies in the UK.”

Executive director for international affairs at National Iranian Oil Company (NIOC) emphasized that the two cargos have been exported to Britain under single-shipment contracts; “negotiations are still in progress with companies like Shell or BP to ink long-term oil sale agreements.”

The official further stressed that a single cargo of gas condensate has been recently sold to BP asserting “under the spot contract, one million barrels of Iranian gas condensate were delivered to the British company.”

“Talks have also begun with Royal Dutch Shell Oil industry company over long-term sales of crude oil though no final agreement has been reached yet,” stated Ghamsari.

He recalled that mechanism and volume of oil sales within long-term deals are still being negotiated with Shell; “NIOC will continue negotiations with the British firm in order to finalize the contracts.”

In July, Shell imported 130,000 tons of Iranian crude from Kharg Island on 8 July to continental Europe with the destination being Rotterdam of the Netherlands.

Iran’s NIOC had earlier subjected new orders by Shell to clearing its debts for previous purchases and it was in April that the Iranian company confirmed clearance of the 2.8-billion-dollar debt by the Anglo-Dutch company.

Earlier this year, Ghamsari had maintained that Shell owns refineries or shares of refineries in various world countries adding “the possibility exists for Shell to transfer a portion of the purchased crude to Germany.”

 

HA/3785260

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EU environment ministers agreed to fast-track the ratification of the landmark Paris agreement on climate change, despite the fact that some national parliaments have yet to approve the deal.
“All member states greenlight early EU ratification of Paris agreement. What some believed impossible is now real,” European Union President Donald Tusk said on Twitter, Reuters reported.
“Victory!” tweeted French Environment Minister Segolene Royal, Yahoo wrote.
Fears that the United States and China — the world’s two biggest polluters — were leaving the EU behind on ratifying last year’s historic deal pushed the bloc’s 28 ministers to rush through the collective measure.
Around 60 countries have now committed to the landmark agreement designed to stem the planet’s rising temperatures, which was sealed in December 2015 in the French capital.
“This is a historic day,” EU Environment Commissioner Miguel Arias Canete said in a news conference, “A day when we put behind us any doubts that the EU is ready to join the Paris climate agreement.”
Seven EU countries including Germany and France have ratified the deal so far.
The Paris accord requires all countries to devise plans to achieve the goal of keeping the rise in temperatures within 2°C (3.6°F) above pre-industrial levels and strive for 1.5°C (2.7°F) if possible.
Leaders of EU countries had agreed at a summit in the Slovakian capital Bratislava on Sept. 16 that the bloc should push through ratification at a collective level as soon as possible.
Questions about how emissions cuts will be divided among EU countries have held up the deal in a number of nations, not least over the issue of how Britain’s vote to leave the union will affect quotas.
The European Parliament must now give its approval before the EU actually ratifies the agreement, an EU statement said.
The ministers ‘agreed to speed up the process of ratification of the Paris Agreement’ and “decided to go ahead with ratification at EU level”, said the statement.
“Member states will ratify either together with the EU if they have completed their national procedures, or as soon as possible thereafter,” it added.
Europe has prided itself on taking a global lead on climate change issues but has watched with alarm as the rest of the world has left it behind.
The Paris agreement received a major boost earlier this month when China and the United States, the two largest emitters,
jointly acceded to the deal during a summit between presidents Barack Obama and Xi Jinping.
At least 30 countries jointly ratified the Paris deal at the UN General Assembly in New York on Sept. 21.
France’s Royal told AFP earlier this month that she was upbeat the accord would take effect before the next UN-led climate conference on Nov.  7 in Marrakesh, Morocco.

 

rushed through! Really why?

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3 airlines negotiating to launch direct flights to Tehran

1. Economy

October 3, 2016

 

TEHRAN- A member of board of directors of Tehran Imam Khomeini Airport City Company announced that his company is holding talks with Indian, South Korean and Canadian national airlines to inaugurate their direct fights to Tehran, Tasnim news agency reported on Sunday. 

Kourosh Fattahi said that from the beginning of the current Iranian calendar year (started March 20), foreign national airlines including British Airways, Air France and Thai Airways have launched direct flights to Tehran and Imam Khomeini Airport is conducting negotiations with Air India, Korean Air, and Air Canada about commencing direct flights to the Iranian capital.
The lifting of sanctions against Iran in January has turned Tehran into a new economic frontier and an emerging tourism market, thus catching the attention of international airlines.

HJ/MA 

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FRANKFURT (Reuters) - Siemens on Monday said it had signed a contract to supply components for 50 diesel-electric locomotives to Iran, further strengthening its business ties with the country.

Under the contract, signed with Iranian power and infrastructure group Mapna during an official visit of German Economy Minister Sigmar Gabriel to Iran, Siemens will deliver the components, which will be assembled in Karaj, Iran's fourth-largest city.

"As Iran seeks to modernize its railway infrastructure, Siemens is proud to support these ambitions with modern rail systems," Siemens management board member Siegfried Russwurm said in a statement.

Siemens did not disclose the value of the contract. Based on comparable deals, the order could be worth a low triple-digit million euro amount.

The order comes after Siemens in March signed an agreement with Mapna under which Mapna will acquire the technology to manufacture Siemens F-class gas.

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TEHRAN – Iran and Germany signed 10 memoranda of Understanding (MOU) at the end of their 5th Joint Economic Committee meeting in Tehran on Monday.

The MOUs were in a variety of areas ranging from finance, joint venture, banking, insurance, and urban development, to oil, gas and petrochemicals, renewable energy, railway, and environment.

The German vice-chancellor and minister for economic affairs and energy, Sigmar Gabriel, and the Iranian minister of finance and economic affairs, Ali Tayyebnia, signed the documents in the presence of some other officials from the two countries.

Gabriel, heading a 160-member delegation comprising corporate managers, entrepreneurs, and businessmen arrived in Tehran on Sunday.

Central banks ink deal 

Germany’s Deutsche Bundesbank (the central bank of the Federal Republic of Germany) and Central Bank of Iran (CBI) reached an agreement for technical cooperation. Meanwhile, SMS group, a builder of steelmaking plants, INTRA industrial solutions, Mitsubishi Germany and Keller HCW were among the firms which signed MOUs. 

On the sidelines of signing ceremony, Tayyebnia said, “This event is an indicator which shows willingness of the two sides to expand economic cooperation.” “Committee meetings are good opportunities to steer the two countries’ economic relations,” he added.

Touching upon the country’s economic policies, the minister said that Iran’s economic policy has always been focused on deepening ties with different countries, especially with traditional trading partners. 

Post-sanctions era a good opportunity

Elsewhere in his remarks, Tayyebnia referred to the post-sanctions era as a good opportunity, saying, Iran and Germany have great potentials for bilateral cooperation and the two countries’ public and private sectors should collaborate in all areas.

“Iran has reviewed and changed the framework for cooperation and collaboration with other countries,” the minister said, noting that some incentives and advantages will be offered for foreign investments.

“Our main goal is to attract more direct investment, increase joint ventures, boost cooperation in free and special economic zones and also in science and technology parks,” he added.

In the end, Tayyebnia suggested that the value of trade between the two countries which was $2.2 billion in 2015 should increase to $6 billion within two years.

Financial, banking relations 

Gabriel for his part expressed his satisfaction with the potential outcomes of the joint committee meeting and said that the two sides should work on ways to remove hurdles to the two-way trade.

Further in his remarks, Gabriel noted that around 2,000 German companies are members of the Iran-Germany Joint Chamber of Commerce and added, the joint economic committee meeting is taking place after 15 years and hopefully the next meeting would be held in the near future. 

Touching upon the reestablishment of financial and banking relations between the two countries, the German minister noted, “There are still obstacles in financial and banking relations between Germany and Iran and we must try to overcome these barriers and expand cooperation.”

 Iran welcomes Germany’s private sector

Prior to the meeting on Monday, Iran-Germany business commission was held at Iran Chamber of Commerce, Industries, Mines and Agriculture.

During that event, Iranian Deputy Finance Minister Mohammad Khazaei voiced the country’s interest on expanding economic relations with Germany.

Khazaei said that the talks are underway to pave the way for expansion of German private section's investment in Iran.

Germany was number five in the list of top exporters to Iran following China, the UAE, South Korea and Turkey during the first half of the current Iranian calendar year (March 20-September 21). 

Exports to Iran jumped 15 percent in the first half of 2016 to 1.13 billion euros and could reach 4 billion euros in the full year, said Michael Tockuss, head of the Hamburg-based German-Iranian Chamber of Commerce. 

EF/MA/MG

 

[screwball]

Iran to put 1st IPC on tender by mid October 

1. Economy

August 30, 2016

 

TEHRAN - The first tender for Iran’s new oil and gas contract model, known as IPC, will be held by the mid October, Ali Kardor, the managing director of National Iranian Oil Company (NIOC), announced in a press conference on Tuesday.

According to Kardor, South Azadegan oilfield will be the priority for the first tender and the tender for mid and small oil fields may be held for domestic companies earlier than the mentioned date.

South Azadegan is one of the five oilfields, dubbed the West Karoun oilfields, Iran shares with Iraq at the western part of Iran’s southwestern region of Karoun. 

The official also mentioned that the general framework of the IPC has been approved by the cabinet on Monday and some amendments have been applied.

He noted that based on the latest amendments, oilfields with a recovery factor less than 20 percent are top priority and a copy of the finalized IPC will also be sent to the National Security Council for approval.

“The duration has not been changed and it is still 20 years,” he added.

Further in his remarks Kardor noted that NIOC will start notifying foreign companies and will send invitation letters for the tender next week.

In November 2015, Iran introduced a new model of oil and gas contracts, known as Iran Petroleum Contract (IPC), which will replace buy-back agreements. It is expected to offer more flexible terms on oil price fluctuations and investment risks to make the sector more financially attractive.  

‘Technology transfer stressed in IPC’

Asked about technology transfer, the official said that in the new contracts NIOC has placed a significant importance upon transferring new technologies to the country. “We have focused on technology transfer in three different layers namely upstream, engineering, procurement and construction (EPC) and equipment,” he added.

 ‘$134b needed for upstream projects by 2021’

According to Kardor, NIOC needs $134 billion of investment for upstream oil and gas projects by 2021 to meet the objectives of the country’s Sixth National Development Plan (2016-2021) and with the new contract model it would be possible to reach this figure even sooner.

Signing new contracts, it is estimated that about $10 billion of foreign investment will be attracted by the end of current Iranian calendar year.

Earlier this week Gholamreza Manouchehri, the deputy managing director of NIOC for development and engineering affairs, said that Iran will sign two or three deals based on the new model of oil contracts, known as IPC, by the end of the current Iranian calendar year (March 20, 2017).

‘Pre-sanctions level reachable by Mar. 2017’

Answering a question by the Tehran Times about Iran’s current production level, and the production perspective for the future, the official said that the country will reach the pre-sanctions level of 4 million barrels per day by the end of the current Iranian calendar year (which ends on March 20, 2017) and reaching 5.2 million bpd is on the agenda.

Elsewhere in the press conference, asked about Algeria meeting and Iran’s position, then NIC official didn’t comment on the subject.

 

EF/MA

[Freedomwish]

Wow Screwball, I swear you're likely to become the "Master Yota" of this Iranian Rial thread hahaha  awesome articles as of late!  Keeping the faith!! 

[screwball]

17 minutes ago, Freedomwish said:

Wow Screwball, I swear you're likely to become the "Master Yota" of this Iranian Rial thread hahaha  awesome articles as of late!  Keeping the faith!! 

Very excited you see all these countries that have a better exchange rate than iran, and you know it's crunch time for irans president and irans economy they want their place! With all that oil, currency swap arrangement billions in investment! 

[screwball]

cartoon by Arvin, Iranian daily Shargh
 

Tasnim News Agency reported that 10 companies have so far submitted their proposals to Iran's Ministry of Petroleum for the development of 15 projects. 

They, Tasnim said in its report, include big European names such as Total, Lukoil, Shell, Eni, OMV and Asian giants like CNPC, Sinopec and Pertamina. 

Several of the key projects that the companies have targeted are the same ones they had been previously involved in or for which they had been negotiating with Iran in the past. 

The most lucrative project up for the grabs may be South Azadegan for which Total has presented its proposal. 

South Azadegan was discovered in 2001 in what was described at the time as the world's biggest oil find in decades.

Next in line could be Yadavaran for which both Shell and Sinopec have presented their proposals.

Total and Shell had been negotiating with the National Iranian Oil Company (NIOC) in early 2000s over the development of South Azadegan and Yadavaran but their talks did not lead to an agreement.

Shell has also bid for the re-development of Soroush oil field - located in the Persian Gulf - which it had previously developed in early 2000s.

Total, Eni and Hyundai have presented proposals for unspecified phases of South Pars gas field. Total was already involved in the development of South Pars Phases 2 and 3. Eni was involved in the development of Phases 4 and 5 and Hyundai in Phases 4, 5 and 6. 

Iran's new format of oil contracts is replacing buyback deals. Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

But under the new contracts, the NIOC will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.

Under the new contracts, different stages of exploration, development and production will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.