KTFA:
BACKDOC: ARE THEY USING NEGATIVE INTEREST RATES TO PROP UP BANK RESERVES AS DEBT SOARS WITH SPIRALING DEFLATION? MMMM (see article below)
OR POSSIBLY ARE THEY TRYING TO PROP UP U.S. TREASURY BONDS TO KEEP THE GLOBAL ECONOMY FROM COLLAPSING?
EITHER WAY OR BOTH, BANDAIDS ARE ABOUT TO BE RIPPED OFF OF THE THINNED SKINNED GLOBAL ECONOMY!
REMEMBER THE PNEUMONIC TO DETERMINE THE DIFFERENCE BETWEEN A KING SNAKE AND A CORAL SNAKE?
THE IMF IS CURRENTLY ON ALERT, BUT IF JACK, JACK, JACK ALOWS THE MONETARY REFORM TO DRAG OUT, THE "RED AND YELLOW KILL A FELLOW", MAY TAKE THE IMF FROM ALERT TO ALARM!
I SAY JACK ITS TIME TO ACT, ACT, ACT, BY MID YEAR LIKE CHRISTINE SAID, SO WE CAN SAY, "RED AND BLACK OK JACK"! DOC IMO
....
BACKDOC: ARE THEY USING NEGATIVE INTEREST RATES TO PROP UP BANK RESERVES AS DEBT SOARS WITH SPIRALING DEFLATION? MMMM (see article below)
OR POSSIBLY ARE THEY TRYING TO PROP UP U.S. TREASURY BONDS TO KEEP THE GLOBAL ECONOMY FROM COLLAPSING?
EITHER WAY OR BOTH, BANDAIDS ARE ABOUT TO BE RIPPED OFF OF THE THINNED SKINNED GLOBAL ECONOMY!
REMEMBER THE PNEUMONIC TO DETERMINE THE DIFFERENCE BETWEEN A KING SNAKE AND A CORAL SNAKE?
THE IMF IS CURRENTLY ON ALERT, BUT IF JACK, JACK, JACK ALOWS THE MONETARY REFORM TO DRAG OUT, THE "RED AND YELLOW KILL A FELLOW", MAY TAKE THE IMF FROM ALERT TO ALARM!
I SAY JACK ITS TIME TO ACT, ACT, ACT, BY MID YEAR LIKE CHRISTINE SAID, SO WE CAN SAY, "RED AND BLACK OK JACK"! DOC IMO
....
Thunderhawk: Backdoc Alert
Investors lose $24 billion a year on negative-yielding bonds
Japan accounts for 66% of negative yielding debt world-wide
Investors lose $24 billion a year on negative-yielding bonds
Japan accounts for 66% of negative yielding debt world-wide
Bonds issued by governments around the world that yield less than zero result in investors losses of about $24 billion a year, according to Fitch Ratings.
The rise of bonds, where lenders are essentially paying borrowers to take their money, is expected to have broad repercussions on financial institutions’ profits and keep demand for U.S. Treasurys high, said Robert Grossman, managing director of the macro credit research unit at Fitch, in a report.
As of April 25, so-called negative-yield bonds totaled $9.9 trillion, which comprises $6.8 trillion in long-term bonds and $3.1 trillion in short-term debt, according to Fitch.
Read: How negative interest rates could lead to a world without cash
Banks, insurance companies, pension funds, and money-market funds, which are key players in the government debt market, are pressured to take on greater risks to make up for negative yields, Grossman said. Some banks have already started to pass on the increased cost to their customers, he added.
“Despite gains booked on many of these securities over the last several years, yields for these [financial] institutions’ portfolios have fallen sharply, and their ability to maintain profits has been reduced,” Grossman said.
Also read: Negative interest rates put the global economy on a razor’s edge
Fitch said 14 governments have at least one benchmark bond yielding below zero and these countries combined have $15.4 trillion in bonds outstanding with an average yield of 13 basis points. By comparison, the trillions in negative-yield bonds are yielding minus 24 basis points, which is equivalent to $24 billion annually.
Negative interest rates are viewed as a controversial and unconventional strategy, which has been employed by Japan and parts of Europe to spark otherwise sluggish growth and lift stubbornly lower inflation.
Japanese debt accounts for 66% of negative-yielding debt world-wide, with $6.5 trillion worth of fixed-rate debt obligations yielding less than 0%,” said Grossman.
Japan’s central bank now owns about 32% of outstanding Japanese government bonds, almost double the Federal Reserve’s 17.2% ownership of Treasurys, data from Fitch and Jeffries show.
The diminished returns from JGB and European sovereign bonds are likely to continue feeding investors’ appetite for U.S. Treasurys and result in low rates for a sustained period, Grossman said.
“This could also complicate any attempts by the Fed to tighten policy by raising short-term interest rates later this year,” he said.
Analysts at Bank of America Merrill Lynch recently estimated that negative-yield bonds accounted for nearly one fourth of the global bond market and are likely to continue growing as governments seek novel means of stimulating their economies.
Still, despite soft patches in the U.S. economy, the Federal Reserve won’t have to resort to negative rates soon as the outlook on growth and inflation are generally optimistic, said Thomas Simons, senior money-market economist at Jefferies LLC.
“Some day in the future we will look back on this time as a very bizarre episode that produced nothing useful,” he said.
http://ift.tt/26ZFRN4
************
Mountainman: Indeed....TIME is Running out and The WATERS of DEBT are RISING FAST.......A Restructuring of their Debt is Possible.....Only If
The Levy's of Debt Can Hang On thru This Transition Process.....Will they try to Issue New Valued Bonds w/ A Deal thru Congress???
That Remains to be Seen.....However,In the Near Future those New Values will be Showing up In Our Treasury Reserves....Perhaps that is A Way to Hold Off The Tsunami Of Debt Plaguing Puerto Rico.......IMO
Blessings,Mountainman (8)=New Beginnings.......
Thunderhawk: Backdoc Alert
Donald Trump Says Puerto Rico Bondholders Should `Take a Hit'
Donald Trump, President Barack Obama and House Speaker Paul Ryan appear to agree on something: restructuring Puerto Rico’s debt.
Trump said Thursday that Puerto Rico’s debt needs to be addressed, a statement that could give Republicans in Congress some cover to reach a deal over a stalled effort to alleviate the fiscal pressures on the island.
"I think you could restructure their debt without a bailout," the presumptive Republican presidential nominee said on Fox News Thursday. "I would be so helpful," he added, referring to his long history as a businessman dealing with debt.
Trump made clear that Puerto Rico cannot pay all that it owes.
"Let the bondholders take a hit," he said.
A restructuring package, H.R. 4900, remains stuck in the House, with Republicans expressing hope that they’ll be able to get back on track after they return next week and before the next big bond payment is due on July 1.
Treasury Secretary Jacob J. Lew has repeatedly said it’s urgent that Congress act on the Puerto Rico debt crisis.
“Puerto Rico doesn’t have decades, Puerto Rico has a crisis today,” Lew said Tuesday in an interview on Bloomberg Television. "The need for action is urgent.”
http://ift.tt/1O0Tfdl
************
Mountainman: Yes for Sure "A STRUCTURAL CHANGE"/Reform per the IMF.......New Rules New Changes and New COORDINATED Energy Sectors.......{ALL} Playing their Part in the GLOBAL TRANSITION for OIL and How it is Going to be Used and (NOT) Manipulated..........for One Countries Personal Preferences for Monetary Gain.......Now they are Calculating this and Implementing the New Strategies........some Like it,Some Don't......But In this New Global Reality......it's a COLLECTIVE Movement.......IMO
Blessings,Mountainman (8)=New Beginnings.........For OIL........
Thunderhawk: Backdoc Alert
Exclusive: Shift in Saudi oil thinking deepens OPEC split
LONDON/DUBAI (Reuters) - As OPEC officials gathered this week to formulate a long-term strategy, few in the room expected the discussions would end without a clash. But even the most jaded delegates got more than they had bargained with.
"OPEC is dead," declared one frustrated official, according to two sources who were present or briefed about the Vienna meeting.
This was far from the first time that OPEC's demise has been proclaimed in its 56-year history, and the oil exporters' group itself may yet enjoy a long life in the era of cheap crude.
Saudi Arabia, OPEC's most powerful member, still maintains that collective action by all producers is the best solution for an oil market that has dived since mid-2014.
But events at Monday's meeting of OPEC governors suggest that if Saudi Arabia gets its way, then one of the group's central strategies - of managing global oil prices by regulating supply - will indeed go to the grave.
In a major shift in thinking, Riyadh now believes that targeting prices has become pointless as the weak global market reflects structural changes rather than any temporary trend, according to sources familiar with its views.
OPEC is already split over how to respond to cheap oil. Last month tensions between Saudi Arabia and its arch-rival Iran ruined the first deal in 15 years to freeze crude output and help to lift global prices.
These resurfaced at the long-term strategy meeting of the OPEC governors, officials who report to their countries' oil ministers.
According to the sources, it was a delegate from a non-Gulf Arab country who pronounced OPEC dead in remarks directed at the Saudi representative as they argued over whether the group should keep targeting prices.
Iran, represented by its governor Hossein Kazempour Ardebili, has been arguing that this is precisely what OPEC was created for and hence "effective production management" should be one of its top long-term goals.To Read More:
http://ift.tt/26XTr3t
************
Mountainman: Go IRAN......But TRANSPARENCY between ALLIANCES is The KEY.....w/out this And ACCOUNTABILITY this Venture is Dead in the Water......And We know the SWISS are In It to Win it.......W/ the BIS in Your Backyard.....this One Is GOLDEN.....IMO
Blessings,Mountainman (8)=New Beginnings......of A Lasting Relationship.......BANKING
Thunderhawk: Iran, Switzerland hold first round of financial talks in Bern
Iran and Switzerland held a first round of financial talks in Bern and explored grounds for cooperation by presenting reports on financial and banking activities and monitoring systems of each other.
The Iranian team to the talks was led by Hamid Tehranfar, Monitoring Deputy of the Central Bank of Iran (CBI) while the Swiss delegation was headed by Rene Weber, director of financial markets of the Finance Ministry.
Announcing Switzerland's support for the implementation of the Joint Comprehensive Plan of Action (JCPOA), Weber announced his country's readiness for cooperation in financial and banking fields as well as campaign against money laundering and terrorism financing.
Meanwhile, Tehranfar called for taking advantage of the experience of Switzerland in monitoring and banking regulations and said continuation of the talks will lead to promotion of financial and banking cooperation at bilateral and international levels.
He said the next round of the talks will be held in Tehran before the end of the year.
This is the first round of financial talks between Iran and Switzerland in line with the roadmap of bilateral relations which was agreed upon by the presidents of the two countries in the course of the visit to Iran of the Swiss President Johann Schneider last year.
http://ift.tt/1WNUSg2
The rise of bonds, where lenders are essentially paying borrowers to take their money, is expected to have broad repercussions on financial institutions’ profits and keep demand for U.S. Treasurys high, said Robert Grossman, managing director of the macro credit research unit at Fitch, in a report.
As of April 25, so-called negative-yield bonds totaled $9.9 trillion, which comprises $6.8 trillion in long-term bonds and $3.1 trillion in short-term debt, according to Fitch.
Read: How negative interest rates could lead to a world without cash
Banks, insurance companies, pension funds, and money-market funds, which are key players in the government debt market, are pressured to take on greater risks to make up for negative yields, Grossman said. Some banks have already started to pass on the increased cost to their customers, he added.
“Despite gains booked on many of these securities over the last several years, yields for these [financial] institutions’ portfolios have fallen sharply, and their ability to maintain profits has been reduced,” Grossman said.
Also read: Negative interest rates put the global economy on a razor’s edge
Fitch said 14 governments have at least one benchmark bond yielding below zero and these countries combined have $15.4 trillion in bonds outstanding with an average yield of 13 basis points. By comparison, the trillions in negative-yield bonds are yielding minus 24 basis points, which is equivalent to $24 billion annually.
Negative interest rates are viewed as a controversial and unconventional strategy, which has been employed by Japan and parts of Europe to spark otherwise sluggish growth and lift stubbornly lower inflation.
Japanese debt accounts for 66% of negative-yielding debt world-wide, with $6.5 trillion worth of fixed-rate debt obligations yielding less than 0%,” said Grossman.
Japan’s central bank now owns about 32% of outstanding Japanese government bonds, almost double the Federal Reserve’s 17.2% ownership of Treasurys, data from Fitch and Jeffries show.
The diminished returns from JGB and European sovereign bonds are likely to continue feeding investors’ appetite for U.S. Treasurys and result in low rates for a sustained period, Grossman said.
“This could also complicate any attempts by the Fed to tighten policy by raising short-term interest rates later this year,” he said.
Analysts at Bank of America Merrill Lynch recently estimated that negative-yield bonds accounted for nearly one fourth of the global bond market and are likely to continue growing as governments seek novel means of stimulating their economies.
Still, despite soft patches in the U.S. economy, the Federal Reserve won’t have to resort to negative rates soon as the outlook on growth and inflation are generally optimistic, said Thomas Simons, senior money-market economist at Jefferies LLC.
“Some day in the future we will look back on this time as a very bizarre episode that produced nothing useful,” he said.
http://ift.tt/26ZFRN4
************
Mountainman: Indeed....TIME is Running out and The WATERS of DEBT are RISING FAST.......A Restructuring of their Debt is Possible.....Only If
The Levy's of Debt Can Hang On thru This Transition Process.....Will they try to Issue New Valued Bonds w/ A Deal thru Congress???
That Remains to be Seen.....However,In the Near Future those New Values will be Showing up In Our Treasury Reserves....Perhaps that is A Way to Hold Off The Tsunami Of Debt Plaguing Puerto Rico.......IMO
Blessings,Mountainman (8)=New Beginnings.......
Thunderhawk: Backdoc Alert
Donald Trump Says Puerto Rico Bondholders Should `Take a Hit'
Donald Trump, President Barack Obama and House Speaker Paul Ryan appear to agree on something: restructuring Puerto Rico’s debt.
Trump said Thursday that Puerto Rico’s debt needs to be addressed, a statement that could give Republicans in Congress some cover to reach a deal over a stalled effort to alleviate the fiscal pressures on the island.
"I think you could restructure their debt without a bailout," the presumptive Republican presidential nominee said on Fox News Thursday. "I would be so helpful," he added, referring to his long history as a businessman dealing with debt.
Trump made clear that Puerto Rico cannot pay all that it owes.
"Let the bondholders take a hit," he said.
A restructuring package, H.R. 4900, remains stuck in the House, with Republicans expressing hope that they’ll be able to get back on track after they return next week and before the next big bond payment is due on July 1.
Treasury Secretary Jacob J. Lew has repeatedly said it’s urgent that Congress act on the Puerto Rico debt crisis.
“Puerto Rico doesn’t have decades, Puerto Rico has a crisis today,” Lew said Tuesday in an interview on Bloomberg Television. "The need for action is urgent.”
http://ift.tt/1O0Tfdl
************
Mountainman: Yes for Sure "A STRUCTURAL CHANGE"/Reform per the IMF.......New Rules New Changes and New COORDINATED Energy Sectors.......{ALL} Playing their Part in the GLOBAL TRANSITION for OIL and How it is Going to be Used and (NOT) Manipulated..........for One Countries Personal Preferences for Monetary Gain.......Now they are Calculating this and Implementing the New Strategies........some Like it,Some Don't......But In this New Global Reality......it's a COLLECTIVE Movement.......IMO
Blessings,Mountainman (8)=New Beginnings.........For OIL........
Thunderhawk: Backdoc Alert
Exclusive: Shift in Saudi oil thinking deepens OPEC split
LONDON/DUBAI (Reuters) - As OPEC officials gathered this week to formulate a long-term strategy, few in the room expected the discussions would end without a clash. But even the most jaded delegates got more than they had bargained with.
"OPEC is dead," declared one frustrated official, according to two sources who were present or briefed about the Vienna meeting.
This was far from the first time that OPEC's demise has been proclaimed in its 56-year history, and the oil exporters' group itself may yet enjoy a long life in the era of cheap crude.
Saudi Arabia, OPEC's most powerful member, still maintains that collective action by all producers is the best solution for an oil market that has dived since mid-2014.
But events at Monday's meeting of OPEC governors suggest that if Saudi Arabia gets its way, then one of the group's central strategies - of managing global oil prices by regulating supply - will indeed go to the grave.
In a major shift in thinking, Riyadh now believes that targeting prices has become pointless as the weak global market reflects structural changes rather than any temporary trend, according to sources familiar with its views.
OPEC is already split over how to respond to cheap oil. Last month tensions between Saudi Arabia and its arch-rival Iran ruined the first deal in 15 years to freeze crude output and help to lift global prices.
These resurfaced at the long-term strategy meeting of the OPEC governors, officials who report to their countries' oil ministers.
According to the sources, it was a delegate from a non-Gulf Arab country who pronounced OPEC dead in remarks directed at the Saudi representative as they argued over whether the group should keep targeting prices.
Iran, represented by its governor Hossein Kazempour Ardebili, has been arguing that this is precisely what OPEC was created for and hence "effective production management" should be one of its top long-term goals.To Read More:
http://ift.tt/26XTr3t
************
Mountainman: Go IRAN......But TRANSPARENCY between ALLIANCES is The KEY.....w/out this And ACCOUNTABILITY this Venture is Dead in the Water......And We know the SWISS are In It to Win it.......W/ the BIS in Your Backyard.....this One Is GOLDEN.....IMO
Blessings,Mountainman (8)=New Beginnings......of A Lasting Relationship.......BANKING
Thunderhawk: Iran, Switzerland hold first round of financial talks in Bern
Iran and Switzerland held a first round of financial talks in Bern and explored grounds for cooperation by presenting reports on financial and banking activities and monitoring systems of each other.
The Iranian team to the talks was led by Hamid Tehranfar, Monitoring Deputy of the Central Bank of Iran (CBI) while the Swiss delegation was headed by Rene Weber, director of financial markets of the Finance Ministry.
Announcing Switzerland's support for the implementation of the Joint Comprehensive Plan of Action (JCPOA), Weber announced his country's readiness for cooperation in financial and banking fields as well as campaign against money laundering and terrorism financing.
Meanwhile, Tehranfar called for taking advantage of the experience of Switzerland in monitoring and banking regulations and said continuation of the talks will lead to promotion of financial and banking cooperation at bilateral and international levels.
He said the next round of the talks will be held in Tehran before the end of the year.
This is the first round of financial talks between Iran and Switzerland in line with the roadmap of bilateral relations which was agreed upon by the presidents of the two countries in the course of the visit to Iran of the Swiss President Johann Schneider last year.
http://ift.tt/1WNUSg2
BACKDOC: IF YOU ALL REMEMBER IRAQ HAD TO SETTLE DEBTS WITH ITS CREDITORS A COUPLE YEARS AGO! HERE WE GO AGAIN!
WE AWAIT FOR IRAQS' SHIA BROTHER TO SETTLE ITS DEBTS SO IT WILL BE ALLOWED TO RE-ENTER THE WORLD!
DO YOU REMEMBER LAST WEEK IT WAS THE U.S. TAKING MONEY THROUGH U.S. COURTS FOR REPARATIONS TO FAMILIES FOR THE BOMINGS! THIS WEEK ITS INDIA!
I LIKE THE PROCESS THEY ARE MAKING AND HOPE ITS ABOUT DONE BUT WE JUST DON'T KNOW YET. WHAT I STRONGLY BELIEVE IS IRAQ HAS MADE UP DRAMA TO STRING THE STORY ALONG UNTIL IRAN IS READY!
IMO THE TWO SHIA BROTHERS WILL GO TOGETHER! IT HAS ALWAYS BEEN PART OF THE DEAL"! AMAZING HOW IRANS RESERVES HAVE SOARED, THAT CAME OUT OF NOWHERE! WOW! DOC IMO
Thunderhawk: Modi’s Iran visit, golden chance to settle financial disputes
The significant and historical visit of the Indian Prime Minister Narendra Modi to Iran slated for May 22 provides a golden opportunity for both countries to develop ties and focus on ways of settling their financial disputes.
New Delhi has arears of dlrs two billion for oil payments it blamed the banking sanctions caused the delay, but, Iran demands India to pay the overdues now that the banking sanctions are lifted.
During his two-day stay in Tehran, the Indian premier is to meet with the Supreme Leader, the President and foreign minister as well as a number of other senior officials.
Indian officials have announced that the Prime Minister's imminent visit aimed at boosting ties and signing energy memoranda of understanding on energy.
After Iran, Modi is scheduled to travel to Qatar.
Iran and India are expected to ink memorandum of understanding on fighting terrorism and defense cooperation which will contribute a lot to peace and stability of the region.
North-South Corridor and investment in railway network are on agenda of the Iranian and Indian officials during the upcoming visit.
A memorandum of understanding on developing Farzad B Gas Field will be finalized during the visit.
The MoU on Farzad B gas field was drafted by India's Minister for Petroleum and Natural Gas Dharmendra Pradhan, who led a delegation of major private sector representatives from oil, gas, and energy fields to Tehran on April 16.
The Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement that a strong private sector presence is being ensured by FICCI under the leadership of Y.K. Modi, Past President FICCI and Executive Chairman, GEECL and private sector players like the Essar Group, Reliance Industries Ltd, L&T, John Energy and Deepak Nitrite.
New Delhi is working on clearing $6.5 billion of debt for Iranian oil and this issue could be resolved soon, according to local media.
New Delhi is ready to clear some $6.5 billion of debt for Iranian oil in near future, provided there is clarity on the channel of payment, Indian media reported Sunday, citing government sources.
'We are working on clearing the dues to Iran and are hopeful that the issue will be resolved soon,' the NDTV broadcaster quoted its sources as saying.
According to the broadcaster, a series of bilateral negotiations at various levels has been held both in Tehran and New Delhi. The sources reportedly told the media that both sides were confident of being able to soon resolve the issue.
However, according to the media, despite the Western sanctions on Iran now being lifted, there are still some issues with the banking channels which create obstacles for regular transactions.
Iran began stepping up international trade and investment cooperation after its historical deal with the 5+1 in July 2015.
In mid-January, the sanctions were removed after the International Atomic Energy Agency verified Tehran’s compliance to the nuclear agreement.
Following lifting of sanctions, Iran terminated the discounts for India, which included the payments being carried out in rupees, and free delivery of oil, and has since been insisting on payments for the crude it exports to Indian refineries to be carried out in euros.
http://ift.tt/21Eb9oI
WE AWAIT FOR IRAQS' SHIA BROTHER TO SETTLE ITS DEBTS SO IT WILL BE ALLOWED TO RE-ENTER THE WORLD!
DO YOU REMEMBER LAST WEEK IT WAS THE U.S. TAKING MONEY THROUGH U.S. COURTS FOR REPARATIONS TO FAMILIES FOR THE BOMINGS! THIS WEEK ITS INDIA!
I LIKE THE PROCESS THEY ARE MAKING AND HOPE ITS ABOUT DONE BUT WE JUST DON'T KNOW YET. WHAT I STRONGLY BELIEVE IS IRAQ HAS MADE UP DRAMA TO STRING THE STORY ALONG UNTIL IRAN IS READY!
IMO THE TWO SHIA BROTHERS WILL GO TOGETHER! IT HAS ALWAYS BEEN PART OF THE DEAL"! AMAZING HOW IRANS RESERVES HAVE SOARED, THAT CAME OUT OF NOWHERE! WOW! DOC IMO
Thunderhawk: Modi’s Iran visit, golden chance to settle financial disputes
The significant and historical visit of the Indian Prime Minister Narendra Modi to Iran slated for May 22 provides a golden opportunity for both countries to develop ties and focus on ways of settling their financial disputes.
New Delhi has arears of dlrs two billion for oil payments it blamed the banking sanctions caused the delay, but, Iran demands India to pay the overdues now that the banking sanctions are lifted.
During his two-day stay in Tehran, the Indian premier is to meet with the Supreme Leader, the President and foreign minister as well as a number of other senior officials.
Indian officials have announced that the Prime Minister's imminent visit aimed at boosting ties and signing energy memoranda of understanding on energy.
After Iran, Modi is scheduled to travel to Qatar.
Iran and India are expected to ink memorandum of understanding on fighting terrorism and defense cooperation which will contribute a lot to peace and stability of the region.
North-South Corridor and investment in railway network are on agenda of the Iranian and Indian officials during the upcoming visit.
A memorandum of understanding on developing Farzad B Gas Field will be finalized during the visit.
The MoU on Farzad B gas field was drafted by India's Minister for Petroleum and Natural Gas Dharmendra Pradhan, who led a delegation of major private sector representatives from oil, gas, and energy fields to Tehran on April 16.
The Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement that a strong private sector presence is being ensured by FICCI under the leadership of Y.K. Modi, Past President FICCI and Executive Chairman, GEECL and private sector players like the Essar Group, Reliance Industries Ltd, L&T, John Energy and Deepak Nitrite.
New Delhi is working on clearing $6.5 billion of debt for Iranian oil and this issue could be resolved soon, according to local media.
New Delhi is ready to clear some $6.5 billion of debt for Iranian oil in near future, provided there is clarity on the channel of payment, Indian media reported Sunday, citing government sources.
'We are working on clearing the dues to Iran and are hopeful that the issue will be resolved soon,' the NDTV broadcaster quoted its sources as saying.
According to the broadcaster, a series of bilateral negotiations at various levels has been held both in Tehran and New Delhi. The sources reportedly told the media that both sides were confident of being able to soon resolve the issue.
However, according to the media, despite the Western sanctions on Iran now being lifted, there are still some issues with the banking channels which create obstacles for regular transactions.
Iran began stepping up international trade and investment cooperation after its historical deal with the 5+1 in July 2015.
In mid-January, the sanctions were removed after the International Atomic Energy Agency verified Tehran’s compliance to the nuclear agreement.
Following lifting of sanctions, Iran terminated the discounts for India, which included the payments being carried out in rupees, and free delivery of oil, and has since been insisting on payments for the crude it exports to Indian refineries to be carried out in euros.
http://ift.tt/21Eb9oI
via Dinar Recaps - Our Blog http://ift.tt/1WNUSg4
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