Monday, 15 October, 2018

SWIFT awaits green light to reconnect with Iranian banks

swiftiran

Oct 26 Most Iranian banks will be able to reconnect to the SWIFT financial-transactions system, a key to rekindling foreign trade, once Iran’s nuclear-related measures have been verified, SWIFT said on Monday.

SWIFT, or Society for the Worldwide Interbank Financial Telecommunications, operates service transmitting letters of credit, payments and securities transactions among 9,700 banks in 209 countries.

Iran and the United States, France, Britain, Germany, Russia and China reached an agreement in July on curbing Teheran’s nuclear work in exchange for removing sanctions that have isolated the country and harmed its economy.

The International Atomic Energy Agency (IAEA) is expected to announce sometime in coming months whether it has verified Iran’s implementation of the nuclear-related measures.

The European Union approved legislation on Oct. 18 allowing for the lifting of EU sanctions as set out in the Iran nuclear agreement. That includies restrictions on financial systems like SWIFT.

Banks that were subject to sanctions specified in the nuclear deal will automatically be able to reconnect “following the completion of our normal connection process, that is administrative and systems checks, connectivity and technical arrangements”, SWIFT said.

Re-establishing links to the world’s financial networks will make it easier for foreign companies to take part in privatisations in Iran, a senior Iran official said in July.

SWIFT said some Iranian banks will still be excluded under other sanctions.

Reuters

Iran to join BRICS New Development Bank

Tehran intends to participate in the BRICS New Development Bank, the Iranian Tasnim news agency reported on Monday, citing an Iranian official.

The Iranian Deputy Minister of Economic Development Mohammad Khazaee said at a meeting of a joint Iran-Brazil economic council that the country is aiming to join the BRICS bank.

The Bank was established in July at the BRICS summit in the Russian city of Ufa. The NDB intends to promote sustainable development in BRICS states. The start-up capital is $50 billion and is projected to reach $100 billion. The headquarters of the bank is in Shanghai.

NDB is headed by a veteran Indian banker KV Kamath, who said the bank would be giving its first loans in April 2016.

BRICS – Brazil, Russia, India, China and South Africa – comprise about 30 percent of world’s GDP in PPP terms and are projected to increase to as much as 45 percent by 2030. The bloc already accounts for 17 percent of world trade.

Last week, Russian Energy Minister Aleksandr Novak visited Iran where he negotiated a Russia-Iran bank to boost joint projects. The report of Iran joining BRICS bank appears to be linked to Novak’s visit.

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