23 September 2019 - 18:16
2 European banks to join INSTEX

TEHRAN, Sep. 23 (MNA) – CEO of Iran’s Special Trade and Finance Instrument (STFI), Iranian counterpart to INSTEX, announced on Monday that a European bank has been appointed for carrying out financial transactions of INSTEX, while the second bank is to be selected, soon.

“Due to the US-led sanctions on Iranian oil, INSTEX cannot be funded by oil revenues, therefore, Iran seeks to finance the European financial mechanism through forex revenues including those from exports of non-oil goods,” Ali Asghar Noori said.

“The other negotiation option with European parties is funding INSTEX via selling oil to non-European customers such as some Asian countries,” he added.

As he admitted, during his recent visit to Iran, Chairman of INSTEX Michael Erhard Bock, has made some positive remark about the probability of allocation of the French $15 billion credit to Ian in near future.

Presently, seven Iranian banks are the shareholder of STFI, the official said.

The new INSTEX president said on September 18, that A number of European banks and firms have expressed readiness to engage in Europe’s proposed financial channel, called INSTEX, which is aimed at helping Iran circumvent the US’ sanctions in its foreign trades.

"We have seen some requests from European companies such as one French firm that wishes to sell cattle to Iran,” Bock said in a meeting with the representatives of the Iranian private sector in Tehran.

He added that some small Italian, German and French banks are also ready to take part in the mechanism to clear the barter trade.

INSTEX is a special-purpose vehicle established in January 2019 by France, Germany and the United Kingdom to facilitate non-dollar trade with Iran in a bid to bypass US sanctions.

So far, INSTEX has not become operational despite intense efforts on all sides.

The deputy caretaker for international affairs at Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA), Hesamoddin Hallaj, who was also present at the meeting, pointed to the France’s proposal of a $15 billion credit line for Iran, saying its necessary to implement the new bid as soon as possible.

He warned that if Europe fails to implement the mechanism faster, then Iranian businesses will be looking at eastern potentials.

According to him, the chamber of commerce is working on the goods that can be exchanged via barter as well as the Iranian companies that are prepared to take part in the process.

Bock welcomed the move, saying that Tehran Chamber of Commerce should later give the list to the STFI, the Iranian counterpart to INSTEX.

Both sides agreed that companies and firms that want to join the channel need to be evaluated first.

HJ/IRN83487631

News Code 150369

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