Iranian Rial

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The Central Bank of Iran in a statement has assured that its unpublished balance sheets will finally be made public soon adding that the delay in its release has nothing to do with the government's debts to the CBI as was claimed in a recent report.

On Tuesday, Payesh news website published a report claiming that the governor of the CBI Valiollah Seif had sent a letter to President Hassan Rouhani, formally asking him to clear the government debts to the central bank.

Citing "an informed source" the website claimed it "would not look good" for the government if the CBI balance sheets came out because they would reveal the scale and scope of the government's unmet commitments.

"Before anything, it must be noted that such a letter does not exist," the central bank statement said. "Therefore referring to a fictitious and false letter and publishing a news item based on it is far from professionalism and ethics."

The statement then delves into the matter of CBI's unpublished balance sheets (the last one was published in 2013), promising that statements for 2014 and 2015 will soon be made public.

"Unlike false claims made in the news article, the general assembly relating to 2014 was convened in early 2016 with the goal of approving the CBI balance sheet of the same year. The president was also present and the event was covered by the media."

"The balance sheet for 2014 will be finalized and published soon," the central bank said.

Furthermore, it said the CBI balance sheet for 2015 "has been drawn up and is being finalized" and the relevant general assembly will be held in the foreseeable future.

The CBI notes that in contrast to what was claimed, a hiatus in the publication of its balance sheets since 2013 is "natural" and there have been precedents in the past when balance sheets were published with delays.

"The aforementioned delay was because the intention was to publish the finalized data. To meet the data needs of economic experts and pundits, the relevant economic data will be published in the CBI's other publications," adds the statement.

In conclusion the statement says "the CBI's approach toward publishing economic statistics has been clear and linking balance sheets to repayment of   government debt is utterly false."

It is said that the government owes over one quadrillion rials ($29 billion) to the banks alone, a legacy it inherited from its predecessor.

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Insurance firms expect Iran opening in 2017

Fri Oct 21, 2016 2:24PM

1. Home
2. Iran
3. Economy

Insurance firms say they expect to see a major opening in the Iranian market in 2017. 

International insurance companies say they expect to see a major opening in the Iranian market in 2017 with several key players saying they have already won deals to cover businesses in the country. 

Industry experts told Reuters that industry executives say aviation and energy are two main sectors in focus in Iran’s multi-billion insurance market.   

They emphasized that top tier European export credit agencies had specifically become active in guaranteeing trade finance for Western companies doing business with Iran.

Reuters further added that Germany's Hermes, Italy’s SACE, and France's Coface have all recently signed agreements to guarantee a certain trade activity with the Islamic Republic.   

"About a dozen transactions have been approved so far," an unnamed Hermes spokesman told Reuters.

"The demand is there from the exporters' side but they need a lot of information. There is a continuous and rising flow of applications (for export credit guarantees)."

SACE emphasized that it had also undertaken its first small transactions with Iran.

"The lingering risks should not be underestimated, however, as they might create problems ... legal, documentary, operational, for companies interested in building or restoring commercial or financial relationships with local counterparties," a SACE spokesman said.

Furthermore, France's Coface told Reuters that the company had signed an agreement with Iran to guarantee trade finance on behalf of the French government.

Christian Bieri, EMEA reinsurance head at insurance group MS Amlin, said Iran was "very much under discussion" by insurance companies. 

"It’s very high up the agenda," Bieri told Reuters. "It's going to be something for 2017."

Lloyd's Chairman John Nelson emphasized that his company had historically been active in Iran, stressing that the Islamic Republic was a "market we would like to get back into".

Other large insurers and reinsurers such as Hannover Re are also looking closely at Iran, Reuters added.  

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The Iranian government has unveiled a policy package to stimulate the stagnant economy through higher investment in production and boosting consumer spending. 

The measures are envisaged for a duration of six months in the run-up to the lifting of sanctions. Expectations of the sanctions relief have deepened the market doldrums as consumers hold off on purchases of domestic goods.

Government officials are anxious amid warnings that the economy might be set for zero growth or even slip back into recession.

Since coming to office in 2013, the administration of President Hassan Rouhani has ridden out recession and presided over a growth rate of about 3% by following a tight monetary and fiscal policy.

It has also brought down inflation rates from above 40% to 15% and pledged to achieve single digits before his tenure is over.

For public spending, the government plans to use the banking sector to offer credit cards at concessionary rates for purchase of homemade goods. Loans up to 80% value of cars with repayment period of seven years are also on offer.    

The government seeks to use Iranian banks to release some credit into the economy. 

Senior economist Massoud Nili was unimpressed, saying consumer incentives were not sufficient and the government had to raise foreign exchange rates against the national currency, the rial, in order to prop up local exporters. 

To boost production, the government will plough in $10 billion into the sector. It also plans to cut interest rates in order to lower borrowing costs for producers.

Minister of Economic Affairs and Finance Ali Tayebnia said there is an anemic demand for Iranian goods in the market which is the biggest challenge of the local producers.          

Government debt to local banks and contractors 

Meanwhile, Iranian banks and financial institutions are faced with a credit crunch amid piled-up debts owed by the government and defaulting private borrowers.

Some of the debt is the legacy of ex-president Mahmoud Ahmadinejad whose generation of liabilities through a series of development projects and reckless spending amid a flush of oil income left his successor with a massive burden.

The drop in oil prices has compounded the current government’s troubles. Tayebnia said the administration’s financial resources have dwindled by 24% as a result.   

Nevertheless, the government’s debt is still below 25% of the gross domestic product (GDP) which, he said, is a far cry from more than 100% in many advanced countries.

“Being in debt per se is not a bad thing for the government. What is bad is being a bad debtor and having one’s books not in order,” the minister added.

Tayebnia said the government planned to clear its debts to contractors through issuing bonds worth 160 trillion rials ($5.3 billion). They will include 60 trillion rials of Sharia-compliant sukuk, 50 trillion rials of participation bonds and 50 trillion rials of treasury bills.

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Informatics Services Corporation, a leading developer of banking and payment solutions in Iran, has launched a formal bid to seek partnership with top payment solution suppliers to develop a national platform for management of international card payments.

The company has been given an official mandate to start the “International Card Payment Total Solution” project, with the aim of connecting “Iran’s payment ecosystem to the international card schemes (ICS) including Japan’s JCB and China’s UnionPay in the short term and finally linking it to Visa and MasterCard over the long term,” according to a request for Information document published on ISC’s website.

“This mandate is defined to help create the facility of accepting foreign visitors’ international payment cards in Iran’s payment network and issuing international payment cards for Iranians traveling abroad.”

The Central Bank of Iran has announced that it is in talks with foreign payment networks as well, including European companies to install and implement an international card payment switch in Iran. The absence of international payment systems in Iran has created difficulties for foreign visitors who sometimes have to carry large amounts of cash to pay bills and make purchases in Iran.

Following the lifting of sanctions in January, the CBI started talks with JCB and China’s UnionPay. The two are said to be more likely to provide international bank cards to Iranian customers.

 ISC has noted however that the outlined information about the expected solution is meant to only present a general image of the project and it aims to help the company recognize potential suppliers. “It will constitute neither an exact description of the project, nor an official explanation of its requirements.”

 New Domain

The body expects a solution which includes a Central Card Management Infrastructure to operate in tandem with the current Iranian card processing retail payments infrastructure, while the “the current Iranian card processing retail payments infrastructure will later be merged or migrated into the proposed parallel retail payments infrastructure.”

“The main components of the proposed parallel card management infrastructure are planned to build a new domain called Iran Network for Electronic Transactions (‘INET’)-which will fulfill the purpose of this request.”

INET is expected to be a secure, standard platform, capable of offering a wide range of features including, switching capabilities, international card schemes’ interfaces, loyalty management, data analytics and Business Intelligence, and Fraud & Risk Management as well as AML.

Merchant and device management, online and offline transaction management, dispute resolution are other components of the project, according to the SCI.

“The INET platform should support a mobile gateway as a component of the Central Switch,” the document reads. “The infrastructure components should also include high volume EMV card production.”

Established in 1993, the ISC is dedicated to development of national banking and payment systems, core retail banking total solutions, data center & operation, Wide Area Networking (WAN )solutions and high-end banking equipment. The ISC is a subsidiary of the National Informatics Corporation affiliated with the Central Bank of Iran.

The current payment ecosystem of Iran, mostly developed by the Informatics Services Corporation, already includes Real-Time Gross Settlement System (RTGS), Automated Clearing House (ACH), Scripless Securities Settlement System (SSSS) and Inter-Bank Card Switch systems which include SHETAB (Banking Network) and SHAPARAK (Payment Network).

Numbers show that every Iranian holds 5.5 bank cards on average, as the total number of active bank cards–which are mostly debit cards– stands at a staggering 334 million.

Shaparak, the domestic payment network, hosts an average of 50 million transactions every day, mainly through about 4.5 million POS terminals installed in shops across the country, about 44,000 ATMs and considerable number of online payment gateways.

Payment and banking solutions are considered as having high potential for expansion in the post-sanctions era. Developed and maintained by domestic institutions during the sanctions, the two main sectors have managed to attract a considerable number of users.

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It’s been a busy month for Iran with a number of inroads being made into one of the world’s largest untapped markets.

The US has stated legitimate business with Iran is available, the major powers responsible for lifting sanctions against the country met in New York, Airbus and Boeing received licenses to commence aircraft sales to Iran and Australia led a trade delegation to Tehran and reopened its Austrade office in the capital.

This appetite for engagement has been evident ever since nuclear-related economic sanctions relief was afforded to Iran, reads an article recently published by Lexology, a UK-based provider of business and legal analysis. Below is the full text.

In July 2015, the United Nations Security Council’s five permanent members (China, France, Russia, the UK and the US), along with Germany and the High Representative of the European Union for Foreign Affairs and Security Policy, concluded a historic Joint Comprehensive Plan of Action, better known as JCPOA, with Iran.

The effect of JCPOA limited Iran’s sensitive nuclear activities in exchange for the easing of economic sanctions that have been in place against the country for a number of decades.

This year, sanctions against Iran have been relieved globally across numerous sectors, including financial and banking industries, oil, gas and petrochemical industries, shipping and transport sectors, gold and other precious metals, and banknotes and coinage. There are still restrictions on arms and related materials, certain metals, software and nuclear-related equipment and specified persons and entities.

 Global Engagement

Despite remaining restrictions, many countries are beginning to seek out opportunities for economic engagement with Iran.

An EU delegation has visited Iran to explore a broad variety of sectors for cooperation, including economic relations, science and civil nuclear cooperation, energy and the environment.

The UK has appointed an ambassador to Iran and has also begun expanding economic relations and bilateral cooperation in sectors such as infrastructure and renewable energy-developing MoUs in relation to rail transportation and solar power.

Such diplomatic actions have already resulted in tangible outcomes and deals. In a much anticipated-move, the US Treasury has granted licenses to Boeing and Airbus to deliver planes to Tehran. The transactions are sizable with Boeing’s license covering the sale of 80 planes to Iran’s national carrier, Iran Air and Airbus’ license covering an initial sale of 17 planes, as part of a larger deal involving over 100 planes. British Airways has resumed direct flights between London and Tehran, and Air France has resumed flights between Paris and Tehran.

French phone carrier Orange is negotiating expansion into the Iranian mobile and data markets and Germany has concluded a number of trade deals with Iran, including contracting Siemens to upgrade Iran’s railroad network and Mitsubishi Germany to modernize a gas-fired plant.

Notably, in relation to these latter deals, Germany and Iran’s central banks have agreed to cooperation and Germany has also promised to remind the US of its commitment to the reduced sanctions against Iran.

These are important statements in an atmosphere where international banks and financial institutions are still exercising immense restraint in relation to trade deals with Iran, primarily due to the fact that restrictions on Iranian-related transactions being processed through the US financial system remain in place.

However, in response to mounting international pressure, US Treasury Guidance updated last week has clarified that non-US banks can undertake dealings in US dollars with Iran. Despite this, there are a number of transactions that are still sanctionable, and the prohibitions on routing transactions through the US financial system still present practical difficulties in engaging with Iran.

The normalization of banking relations with Iran will be critical in increasing trade opportunities. These diplomatic strategies, financial-sector commentary and trade deals indicate the global stage is set for economic engagement with Iran.

 Recent Australian Movements

Similar movements are mirrored for Australia domestically. Australia has the potential for a strong relationship with Iran, having maintained a diplomatic presence there since 1968.

The Australian Embassy in Tehran has remained open throughout years of political tension. Australia has an ambassador to Iran and Australia’s Austrade office recently reopened to assist companies to navigate the complex Iranian market and capitalize on economic opportunities.

Recently, Australia’s Minister for Trade, Tourism and Investment Steven Ciobo led a delegation of Australian companies (including Qantas, Woodside, Cochlear, GrainCorp, LiveCorp, WorleyParsons, Meat & Livestock Australia, Rubicon Water and Blackmores) to Iran. The delegation aimed to unlock opportunities in the health, water management, agribusiness and food, mining, education and training sectors.

Blackmores, a provider of vitamins and supplements, signed an agreement granting distribution rights to an Iranian company for Blackmores products in Iran.

Australia concluded three MoUs with Iran. The first, on trade and investment, establishes a framework for economic relationships in priority areas, including agribusiness, resources, health and water resource management.

The second relates to cooperation on export finance, with the aim of helping businesses overcome the challenges associated from sanctions that still apply in the financial sector.

The third relates to water management cooperation and the commercial opportunities associated with the efficient use of water resources. In this vein, universities in Australia and Iran have reached agreement over the formation of an aqua research center.

Iran has remained economically unexplored for decades. Trade, investment and negotiations are gaining traction and the Australian Department of Foreign Affairs and Trade has announced that companies looking to engage with Iran are able to have specific exports or deals assessed. While compliance with a still-complicated sanctions regime is required (there are still limitations depending on what you intend to sell and to which Iranian entity), Iran is looking like a land of opportunity.

 

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Deutsche Bank Handling Oil Transactions Again

1. Energy

Sunday, October 23, 2016

Deutsche Bank Handling Oil Transactions Again

 

 

 

Adeputy oil minister said on Saturday that oil cooperation between Iran and Germany’s Deutsche Bank has resumed.

According to Amirhossein Zamaninia, negotiations are being held also with other major European banks and their collaboration with Iran is expected to gain momentum in the next few weeks, IRNA reported.

Noting the large banks' reluctance to cooperate with Iran in post-sanctions era to handle oil transactions, the official said unlike in the past when collaboration was limited to small European banks, large banks are also showing interest in boosting relations with Iran as it opens up its economy to the outside world.

"Financial transactions with Deutsche Bank started a few days ago over a number of oil deals," he said, noting that plans are in place to develop banking ties with several high-profile European financial institutions.

Pointing to talks with oil giants regarding the new oil partnership under IPC (Iran Petroleum Contracts), Zamaninia said, “A number of enterprises are still skeptical about resuming  cooperation with Iran within the framework of the new model. However, negotiations and contacts are underway" to resolve the problems and move forward.

"Negotiations have been held to introduce IPC to international companies,” the official noted, saying that agreements have been reached with several European companies the results of which will be made public in the near future.

Deutsche Bank officially suspended banking transactions in Iran in 2007, namely those related to oil or oil byproducts. In the same year, Deutsche Bank spokesman Ronald Weichert announced that it was pulling out of Iran to comply with international sanctions imposed on Tehran over the nuclear energy program dispute.

Despite the removal of some banking restrictions in January, Tehran has secured ties with only a limited number of banks as US sanctions related to non-nuclear issues still remain in force.

Iran is in active talks with insurers to provide cover in a market worth $9 billion last year and potentially double that in the next decade.

--- Insuring Tankers

According to Zamaninia, European insurers now have no problems insuring Iranian oil tankers.

Protection and Indemnity (P&I) clubs—marine insurers owned by shipping firms—have started to provide cover for Iran’s shipping fleet, including its oil tankers.

Jonathan Andrews, director and head of eastern underwriting with Britain’s Steamship Mutual, told Reuters, "We have a long history of insuring Iranian ship owners, and we are happy to be insuring our former members again."

Ship insurers say there are still constraints on payments, given a freeze on using the US financial system. European banks face problems since transactions with Iran in dollars cannot be processed through the US financial system.

“Problems remain in relation to the channeling of payments through the banking systems,” noted Andrew Bardot, executive officer with the International Group of P&I Clubs, adding that solutions are being found, but it is a difficult process and likely to remain so for the foreseeable future.

As Iran has aimed to ramp up oil exports, securing marine insurance has been crucial. Top tier western ship insurers are slowly reaching deals with Iran as they seek to reenter a multibillion-dollar market

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https://financialtribune.com/articles/economy-business-and-markets/52041/central-bank-sets-conditions-for-fintechs

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https://financialtribune.com/articles/economy-business-and-markets/52040/majlis-to-pass-banking-reform-bill-by-march

 

sent in March approved early October now waiting on what? 45 days to present it?

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Presidents of five countries are on way to Tehran

Tehran, Oct 22, IRNA – Venezuelan President Nicolas Maduro arrived in Tehran on Saturday afternoon, while presidents of four other states of Sri Lanka, Indonesia, Finland and Bosnia-Herzegovina are on way to Tehran.

 

President of Sri Lanka Maithripala Sirisena is to visit Iran in December.

President Hassan Rouhani visited Southeast Asia last month. He met with his Sri Lankan counterpart on the sidelines of ACD summit in Bangkok.

They exchanged views about many international and regional issues.

President of Sri Lanka Maithripala Sirisena already visited Iran in December 2006.

President Rouhani invited Indonesian President Joko Widodo to pay an official visit to Iran in February 2017.

Rouhani already visited Jakarta, Indonesia, in May 2015 for 2-day to attend the 60th anniversary of Asia-African Conference.

Meanwhile, President of Bosnia-Herzegovina Bakir Izetbegovic as well as President of Finland Sauli Niinisto are to visit Iran late October-November.

President Maduro is the current chairman of Non-Aligned Movement.

He is scheduled to discuss issues of mutual interests with President Rouhani.

Maduro began his tour to Saudi Arabia, Qatar, Azerbaijan Republic and Iran on Friday, while OPEC members meeting in Vienna is to open in less than one month.

Consultations about the energy market are the most important part of the two presidents negotiations.

President Rouhani visited Venezuela last September to entrust chairmanship of NAM to President Maduro.

Meanwhile, President Rouhani is due to visit Armenia and Kyrgyzstan in the next months.
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Soon after the US Treasury Department granted licenses to Boeing and Airbus to sell passenger planes to Iran, Tehran welcomed the move as a fulfillment of American obligations under the nuclear deal.

On September 24, three days after the licenses were issued, Iranian Foreign Minister Mohammad Javad Zarif confirmed that Iran had received the green light to purchase 80 out of the 88 aircraft it had sought to buy from Boeing, adding, “Out of 118 Airbus jetliners, the license for selling 17 has been issued.”

Airbus and Boeing had previously agreed to sell or lease more than 200 passenger planes to Iran, which has sought to revamp its aging air fleet after the signing of the July 14, 2015, Joint Comprehensive Plan of Action.

After the formal January 16 Implementation Day of the nuclear deal, the US Treasury’s Office of Foreign Assets Control issued documents declaring that all US institutions wishing to sell or lease aircraft, spare parts or maintenance and safety services to Iran could apply for licenses on a case-by-case basis.

OFAC guidelines further stipulated that non-US institutions also need licenses for selling and leasing aircraft to Iran if more than 10% of the components of their products are American made, reads an article recently published by Washington-based media website Al-Monitor.

The full text follows:

  Financing Challenge

Beyond the issue of securing licenses to sell the aircraft is the challenge of financing the deals. Hinting at this problem, Zarif told the Council on Foreign Relations in New York on September 23, “The US Treasury’s Office of Foreign Assets Control … tells international banks that it’s OK to do business with Iran but—and the buts and ifs are so long—I mean there is one sentence that it is OK to do business with Iran and five pages of ifs and buts. So at the end of the day, these banks say we will take the safe road. We will forget about Iran. And that has been the outcome. No major European bank has started doing business with Iran now, eight months after the deal. And we believe that’s a shortcoming.”

According to what has been reported so far, the Boeing and Airbus passenger planes are not going to be bought in cash but rather financed. In practice, this means that Iran will buy the aircraft with loans and will repay the debt through revenue generated from operating the planes. Thus, not only is a bank or other financial institution needed to make the deal happen, but the loans must be long term. The broader implication is that if Iran is able to purchase aircraft through external financing, it could also do so with regard to other projects.

  Making Good Progress

While negotiations to finalize the aircraft deals are still ongoing, Iranian officials say they have made good progress. Indeed, things appear to be particularly moving forward on the crucial issue of financing.

On October 14, Tasnim News Agency quoted a source in the Iranian government as saying, “Boeing and an American bank are reaching an agreement to finance Iranian purchase of the airliners through a Japanese bank.”

Prior reports said issues related to financing of the Airbus deal had also been solved. On September 24, Iranian deputy minister of roads and urban development, Asghar Fakhrieh Kashan, was quoted as saying, “A financing agreement between Airbus and a big financial institution has been finalized, which has remained a secret in order to avert some enemies’ plots.”

  Serious Banking Cooperation Around Corner

Some experts are of the view that the OFAC licenses to Boeing and Airbus are a promising sign that serious banking cooperation between Iran and Europe is around the corner. This would be an important development since major European banks have remained wary of remaining US sanctions and thus refrained from resuming banking ties with Iran—even after the formal implementation of the nuclear deal.

As such, Tehran has so far relied on cooperation with smaller European banks while continuing dialogue with the bigger ones. Given the scale of the Boeing and Airbus deals and the need for financing to be long term, it is evident that small banks will not be able to finance the contracts. One can thus expect that major players are involved in the financing and that the deals may help jumpstart business between Iran and major western banks in the near future.

Indeed, beyond authorizing two major deals, OFAC’s licensing of aircraft sales to Iran is giving assurance to the world’s major businesses that it is now possible to resume dealings with the Islamic Republic.

  Big Psychological Impact

Prominent Tehran economist Saeed Leylaz told Al-Monitor, “The OFAC licenses will have a big psychological impact on major investors and financial enterprises. This matters, especially because under immense pressure from Iran and its European trading partners, the United States now has to abide by its obligations under the JCPOA.”

Leylaz added, “Serious cracks have emerged in the most complex and oldest sanctions and this will impact non-nuclear sanctions as well. In as much as Boeing is one of the biggest financial enterprises in the world and the United States, its financial transactions with different US economic sectors will spread to other sectors.”

Al-Monitor also spoke with Tehran-based economist, Tahmasb Mazaheri. He agreed that OFAC’s granting of licenses to Boeing and Airbus to deal with Iran is a good sign of the full implementation of the nuclear deal, but argued that the United States has only facilitated the latter after having in effect been forced to do so.

Pointing to Iran’s deep and lingering mistrust of the United States, Mazaheri added, “Despite this good sign, we cannot trust the United States to fulfill its promises because in order to be assured of these promises, they must be credible—but the United States is not trustworthy. The United States has so far shown that it doesn’t want to fully implement the JCPOA and its acceptance of its obligations has always been accompanied with strict conditions.”

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Iran Deals with Boeing & AirbusAviation

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Asenior official at Iran’s Cultural Heritage, Handicrafts and Tourism Organization said there should be more frequent flights from Russia to various destinations in Iran to help the two sides reap the benefits of relaxed visa procedures between Tehran and Moscow.

“Expanding flight routes and easing visa regulations are key factors that will encourage Russian tourists to visit Iran,” Morteza Rahmani Movahed, tourism deputy at ICHHTO, told ISNA.

The official said Iran can serve as a retreat for Russians looking to escape the cold climate of Russia.

“Russia experiences nine months of intense cold, during which time Europe isn’t any warmer, so we need to promote Iran as a potential alternative,” he said, adding that more flight routes need to be launched connecting Russia to Iran’s warmer cities.

At present, Iran’s Mahan Air and Russia’s Aeroflot fly between the two countries, connecting Moscow and Astrakhan to Tehran.

Iran’s short-term goal is to draw 100,000 Russians a year, up from the current 25,000.

Earlier this month, Oleg Safonov, the head of Russia’s Federal Agency for Tourism, his office and the Russian Foreign Ministry made the issuance of visa waivers for Iranian tours a priority.

While that is good news, Movahed says nothing is final yet.

“Our policy is to reciprocate—meaning we’ll offer the same courtesy to Russian tours—but nothing can happen until the foreign ministries of the two countries sign a deal,” he said.

Iran has made known its intention to completely abolish the visa regime for Russian nationals, provided Moscow agrees on a mutual move.

In February, the two nations relaxed visa procedures what the Russian media have described as “the first step toward a visa-free regime”.

According to Rosstat (Russia’s state statistics service), nearly 35,000 Iranians visited Russia in 2015, which marks a rise of more than 110% compared to a year ago. Russia expects about 70,000 Iranians to visit this year. Iran is said to be a top 20 tourism source market for Moscow.

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Isn't today interesting the day an article comes out about irans banking reform laws iraq posts one about their economic laws! Hmmmm.

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seems the world is taking advantage and moving on with business. well, everyone but the US.

[WheresmyRV?]

CBI assures SMEs of funding

 

Nothing is holding back the banking system from financing small and medium-sized enterprises and by the end of the current fiscal year in March 2017, all production units will have sufficient cash, said the governor of the Central Bank of Iran.

“In the current year and considering the emphasis by the Leader Seyyed Ali Ayatollah Khamenei regarding the Resistance Economy, the CBI exempted the SMEs from several factors that hinder the process of granting them loans,” Valiollah Seif was quoted as saying by the official website of the CBI.

“This effort was made so that by yearend, no production unit would have to suffer from a credit crunch,” he said during a visit to Markazi province in central Iran.

By definition, enterprises run by 100 workers or less, and 50 workers or less are considered medium- and small-sized businesses respectively, according to Iran’s Small Industries and Industrial Parks Organization.

In July, deputy minister of industries, mining and trade Ali Yazdani had said 96% of the 88,000 licensed businesses in Iran are considered small and medium.

The CBI governor said so far, “more than 90.23 trillion rials ($2.8 billion)” worth of loans have been allocated to 12,361 SMEs throughout the country, further noting that in Markazi province alone, 2.7 trillion rials ($85.2 million) was given to SMEs.

On the basis of loan allocation to SMEs, Seif said lending from banks must be used where it will lead to steady and sustainable manufacturing and job creation. He called on the provincial task forces to remove barriers to production by assisting the banking system in the proper allocation of loans and help prevent waste of resources.

The official, who has often emphasized the importance of reviving the ailing SMEs, sent a letter to the chief executives of state-owned banks in early June, asking them to treat financing SMEs as a priority. By official decree of the central bank, lenders and credit institutions were ordered to allocate a minimum of 10% of their loans to these businesses to help create jobs and lift the beleaguered production sector.

In the provincial meeting that was attended by the vice president for executive affairs Mohammad Shariatmadari, director of the National Development Fund of Iran Ahmad Doust-Hosseini and Markazi province’s governor general Mahmoud Zamani-Qomi, Seif also reflected upon CBI resources and expenses.

By Financial Tribune

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KLM resumes flights to Iran

Sun Oct 23, 2016 8:22AM

1. Home
2. Iran
3. Economy

KLM Royal Dutch Airlines has resumed its flights to Iran after a halt of over three years. 

KLM Royal Dutch Airlines, the flag carrier airline of the Netherlands, has officially resumed flights to Iran after a hiatus of over three years.

The first flight of the company in its new Iran service period landed in Tehran’s Imam Khomeini International Airport (IKIA) on Saturday evening, Iran’s local media reported.   

The Amsterdam-based company had suspended its flights to Iran since April 2013 in what its officials said was a result of “economic reasons”. 

KLM Managing Director and Chief Operating Officer René de Groot said that his company is set to establish four flights to Tehran each week. 

He emphasized that his company is happy to resume flights to Iran, emphasizing that he hopes the sanctions against the Islamic Republic would never return.

“What we do is [that] we continue as long as we can,” de Groot told IRIB News Service. “Of course, we hope that the sanctions will not come back and we can grow even with more frequencies.” 

KLM had in August announced that its Flight KL0433 will depart from Amsterdam to Tehran on Tuesdays, Thursdays, Fridays and Sundays as of late October 2016.  

The flights will be operated with a Boeing 777-200 in a three-class configuration with 34 business seats, 40 seats in economy comfort and 242 seats in economy, it added.

Including the new flights to Tehran, KLM now offers 37 flights to nine destinations in the Middle East.

Several international airlines are resuming flights to Iran to tap into increasing opportunities in the country after the recent lifting of sanctions.

British Airways also resumed direct flights to Iranian capital Tehran from July. The airline now operates a six-time weekly service and will move to daily flights from winter 2016.  

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Iran, Germany sign six MoUs on transport

Tehran, Oct 23, IRNA – The Islamic Republic of Iran and Germany on Sunday signed six memorandums of understanding (MoUs) on transport.

 

The MoUs were signed in a meeting between Iran's Minister of Roads and Urban Development Abbas Akhoundi and German Federal Minister for Transport and Digital Infrastructure Alexander Dobrindt on transport cooperation.

Talks on expansion of transport services for Tehran and Tabriz with Siemens of Germany are underway and the two sides have drawn up satisfactory plan for cooperation, Akhoundi said.  

German Federal Minister for Transport and Digital Infrastructure leading a big economic delegation comprising directors of major shipping and ports companies are currently on a visit to Iran to study expansion of transport cooperation. 

Some 20 German economic delegations have visited Iran since last year and some 10 other economic delegations are to pay a visit to Iran by the year-end.
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Code: 82277457 (5625049) | Date: 23/10/2016 | Time: 14:48|

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Malaysian big banks ready to resume banking ties with Iran

Tehran, Oct 23, IRNA – The C.E.O of Malaysia External Trade Development Corporation (MATRADE) Dzulkifli Mahmud said that Malaysian big banks are ready to resume ties and interactions with Iranian banks.

 

Speaking on the sidelines of Iran-Malaysia joint trade meeting which was held on Saturday in Iran's Chamber of Industry, Mine and Agriculture, Mahmud said that the senior officials of Malaysia Central Bank (CIMB), Maybank and some other big banks which disconnected their relations with Iran during the sanction era are now keen on discussing with Iranian banking officials to resume relations.

Mahmud added that the volume of bilateral trade between Iran and Malaysia raised by 8% during the first 8 months of the current Iranian calendar year (beginning on March 20). 

The value of Iran-Malaysia trade was $532m in 2015 and both countries tend to boost it to $.1b.

MATRADE chairman reiterated that Malaysia is interested in having cooperation with Iran in different fields, including oil and gas, car, Halal food industry, electricity, information technology and communication, renewable energies and automation industry.

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• اقتصاد
• Iran
• Malaysia
• banking ties

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Arak, Oct 23, IRNA – President Hassan Rouhani said on Sunday that global economy is like science, arts and information and has no boundary or restrictions.

 

The government always consults with experts of the private sector in various fields of investment, import of technology know-how and ways to create jobs, President Rouhani said. 

Interaction between the government and the private sector plays significant role to develop cooperation with foreign entrepreneurs, he said. 

The President said that the government backs active presence of officials for cooperation with foreign enterprises and entrepreneurs. 

Grounds are now well-prepared for exchange of goods, information and technology with foreign firms, he said. 

The Islamic Republic of Iran is a safe country with the young and active population, unprecedented geographical location and high access to mines of energy, he said. 

President Rouhani said that the country's economy is balanced and rate of inflation is on downward trend indicating a very good situation for investors and producers. 
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US eyes economic ties with Iran

By Fereydoun Majlesi

The US Treasury Department has recently decided to loosen anti-Iran sanctions, relaxing rules on foreigners doing dollar-dominated transactions with businesses in the nation.

The new rules allow transactions with entities in Iran that aren’t under sanctions.

The Treasury's decision implies that the US has realized that its hostile approaches toward Iran over the past decades have backfired.

US President Barack Obama will leave the White House soon as polls suggest his Democratic colleague Hillarious Clinton may succeed him. Hence, Obama does not want to create tensions for Clinton in case she is elected as the next US president.

Besides, the White House seeks to benefit from economic ties with Iran. A few months ago, Iran reached a deal to buy 100 planes from US planemaker Boeing. Washington does not want to lose such golden opportunities. Likewise, other US industrial sectors and its companies can take advantage of Iran's investment potentials.  

The decision by the Treasury to loosen anti-Iran sanctions will help ease tensions between Tehran and Washington. But it will not end more than three decades of estrangement between the two countries in the short run.

Nonetheless, the decision can help Iran and the US get involved in other logical activities.

Meanwhile, economic opportunities will help the two nations resolve their problems through talks.

Although Iran needs to boost its foreign trade, it should explore ways to increase its economic growth.

Peace and stability are among factors which promote economic growth. Hence, resolving the ongoing conflicts in the region paves the way for boosting ties with other nations in the economic, cultural and tourism sectors.

 

  

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Related News :

• US eyes economic ties with Iran
• Political pressure stymies US-Iran ties
• Rouhani: American investors are welcome
• Iran's Rouhani calls for end to hostility with any country
• Taboo of direct talks with US

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[markb57]

so, that's it then. No cash out in the US. Hopefully Canada?

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President Hassan Rouhani defended his planned reforms to revive the ailing domestic economy as the only way to tackle massive unemployment.

"Today, the lack of economic vitality is the main problem facing the society and high unemployment among the youth, particularly the educated population, is the main problem of our families," IRNA quoted Rouhani as saying on Sunday.

"The Iranian people, [especially] the dear youth, should know that there is no way to create sustainable employment for the young generation but by reviving the economy," he said in a public address in the central province of Markazi.

Rouhani noted that his government has managed to meet its promise to develop small- and medium-sized enterprises in the industrial sector and is on track to achieve the targeted 5% economic growth.

The president stressed that Iran's 2015 nuclear deal with major powers was primarily intended to jumpstart the economy.

It went into effect early this year to lift international sanctions against the Islamic Republic in return for temporary constraints on its nuclear program.

"Our struggle was aimed at liberating the national economy from the shackles of sanctions and pave the way for economic revival," Rouhani said.

"We should exploit the promising situation that has emerged after [the implementation of] JCPOA," he said, using an acronym that stands for the Joint Comprehensive Plan of Action, the official title of the accord.

He criticized the conservative opponents of the action plan, "whose smear campaigns against the government effectively disappoint people with the Islamic Republic's establishment".

Rouhani's critics fear his plans to open up the country to the outside world might expose the state to the West's "corruptive influence" and accuse him and his negotiating team of making too many concessions and compromising the Islamic Republic's principles under the deal.

"A lying and foul-mouthed person who tries to provoke disillusionment is not a revolutionary and … has no relations with the [1979] Islamic Revolution," he said.

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The CEO of Malaysia External Trade Development Corporation (MATRADE) Dzulkifli Mahmud said that big Malaysian banks are ready to resume ties with Iranian banks.

Speaking on the sidelines of Iran-Malaysia joint trade meeting on Saturday in the Iran Chamber of Commerce, Mahmud said senior officials from the Central Bank of Malaysia , Maybank and some other big banks which had suspended collaboration with Iran during the sanction era are now keen on resuming relations, IRNA reported.  

He said the volume of trade between Iran and Malaysia increased by 8% during the first 6 months of the current Iranian calendar year to October 21. The value of Iran-Malaysia trade was $532m in 2015 and both countries want to boost it to $1 billion.

MATRADE chairman reiterated that Malaysia is interested to boost cooperation with Iran in different fields, namely oil, gas, auto, Halal food industry, electricity, information technology and communication, renewable energies and automation industry.

Looks like a trip to Malaysia for me!

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Dutch flag carrier KLM has resumed flights to Iran after a three-year hiatus.

Carrying a Dutch trade mission, headed by Minister of Infrastructure and Environment Melanie Schultz van Haegen, on board, a KLM flight landed in Tehran’s Imam Khomeini International Airport on Sunday at 00:05 Tehran local time.

“KLM has tried to strengthen its network by adding Tehran as its 14th new destination in 2016,” KLM President and Chief Executive Officer Pieter Elbers was quoted by the news portal of Iran’s Ministry of Roads and Urban Development as saying.

As per the new schedule, four weekly services will be operated on Sunday, Tuesday, Thursday and Friday between Amsterdam Airport Schiphol and Tehran.

The flights will be operated with a Boeing 777-200. KLM will meet passenger needs by offering three different travel classes: 34 seats in World Business Class, 40 seats in Economy Comfort and 242 seats in Economy Class.

Previously, KLM operated flights to Tehran from July 1991 through April 2013. Including the new flights to Tehran, KLM now offers 37 flights to nine destinations in the Middle East.

The lifting of sanctions against Iran in January, as part of a landmark nuclear deal Tehran signed with world powers in July 2015, has turned Tehran into a new economic frontier and an emerging tourism market, which has caught the attention of international airlines.

The first Air France flight between Paris and Tehran for eight years landed in the Islamic Republic’s capital on April 17, bearing French Transport Minister Alain Vidalies and a business delegation. The airline’s route had been suspended since 2008 because of international sanctions against Iran.

Lufthansa is flying non-stop once again from Munich to Tehran. Starting July 4, the connection under flight number LH 602 will arrive thrice a week in Tehran at 05:20.

British Airways also resumed direct flights to Tehran in September—the first UK carrier to fly to Iran in four years. Six return flights per week now operate between London’s Heathrow and Tehran, which BA described as “an important destination”.

Austria’s national carrier Austrian Airlines started flying three times a week to the Iranian commercial center of Isfahan on September 4. The airline operates an Airbus A320 to the famous Iranian tourist hub located 4,200 kilometers from Vienna on Wednesdays, Fridays and Sundays. Austrian Airlines has expanded its portfolio of up to 14 weekly flights to Tehran by adding Isfahan, thus increasing its services to Iran to 17 flights each week.

Early October, Thai Airways launched a new flight to Tehran. The flag carrier’s launch of four flights per week is projected to double the number of Iranian arrivals to Thailand this year to nearly 200,000 and multiply Thai visitors to the Islamic Republic, currently numbering in the thousands.

Iran is also in talks with Air Canada, Korean Airlines and Air India to establish or increase direct flights.

   Boosting Economic Ties

The new direct route between Iran and the Netherlands is expected to boost bilateral economic ties.

The first KLM plane flying to Tehran “will carry Dutch businesspeople with whom I go on a trade visit, to help promote doing business with Iran”, Schultz was quoted by Dutch news outlet Luchtvaart Nieuws as saying.

The Dutch trade mission’s visit, which will end on October 28, is aimed at boosting economic ties and help Dutch companies increase their share in the Iranian market.

The Dutch minister will specifically focus on promoting commercial relations in the fields of port development, maritime technology, water and delta management, and water technology.

“After having been closed to western companies for almost a decade, Iran has an enormous need for knowledge and products in fields in which the Netherlands excels,” Shultz said in a statement available on the Dutch government’s website.

“The country is faced with major water-related challenges. Its water supply is diminishing, which means that it is increasingly difficult to provide the population with drinking water and have sufficient water available for industry and agriculture. This provides Dutch companies with a host of opportunities in the fields of efficient water consumption, water purification and water desalinization. Our companies also have a great deal to offer when it comes to ports and logistics,” the statement further reads.

The trade delegation is going to meet senior Iranian officials in Tehran and Dutch companies will meet their Iranian counterparts. The schedule also includes a visit to the southern Iranian port of Bandar Abbas, which Iran is planning to develop and renovate.

Dutch companies such as BAM, Van Oord and the Port of Rotterdam, whose representatives have joined the visiting trade team, are hoping to clinch deals to help implement part of Iran’s port plans in Bandar Abbas and southeastern Chabahar Port and Special Economic Zone.

Representatives from Damen Shipyards, Royal Boskalis Westminster, Royal IHC, STC Groep and Witteveen + Bos are also accompanying the Dutch minister during the visit.

Adverio Waste systems, Amstelland, Berson UV, Dutch Water Authorities, Interact Smart Solutions, Witteveen + Bos, and the Netherlands Water Partnership are hoping to clinch deals on water management.

According to the Islamic Republic of Iran Customs Administration, Iran exported $58.5 million worth of goods to the Netherlands over the last Iranian year (March 2015-16), which indicates a 15% decline compared to the year before. Last year’s imports from the European country stood at $786.8 million, down 25%compared to the preceding year.

IRICA’s latest data show Iran exported 8,400 tons of non-oil goods worth $18.5 million to the Netherlands during the first six months of the current Iranian year (started March 20), registering a 19% decline compared with the similar period of a year before.

Steel products, molybdenum, cocoa butter, raisins, vegetable seeds, licorice extract, saffron, dates and tiles were among the main exports.

More than 855,600 tons of goods worth $428.8 million were imported from the European country, which indicates a 26% rise year-on-year. The main imported commodities included corn fodder, oilcake, soybeans, grains, medical equipment, pharmaceuticals, baby formula, vegetable seeds, machinery and industrial tools.

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[pokerplayer]

I strongly believe the US will be playing catch up, but it may be too late. Iran may say " thanks, but no thanks " and will only deal when they have to.

Just my

pp

 

[markb57]

I agree PP. When the world seems to be moving on the US is holding out on that last sanction. Problem is is that one sanction is being gotten around by other businesses and countries with our blessing. Makes no sense whatsoever. There is no gain here by the US for this one sanction.