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| Indian refiners pay off €1b in debt to Iran |
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 Indian refiners paid €1 billion to partially clear debt on crude oil purchases from Iran, which will now resume shipments to the Asian nation, two people with knowledge of the matter said.The money was routed through Istanbul-based Turkiye Halk Bankasi AS, said the people, who declined to be identified because they aren't authorized to speak with the media. Payments were made by Mangalore Refinery and Petrochemicals Ltd, Essar Oil Ltd and Hindustan Petroleum Corp. Refiners in India have faced difficulty in finding banks to transfer payments for oil purchases from Iran, which is constrained by international sanctions over its nuclear program. India owes $5 billion for crude, Iranian central bank governor Mahmoud Bahmani said on July 18. Article continues below The gridlock, which started in December when India's central bank scrapped a mechanism to pay for oil in euros and dollars, threatened $9.5 billion in trade between the nations. Indian refiners, seeking to end the impasse, opened accounts with state-owned Union Bank of India Ltd to route money through a lender in Turkey as an experimental option, two people with direct knowledge of the matter said on July 29. India in February arranged for State Bank of India, the nation's biggest lender, to help in making payments through Hamburg-based Europaeisch-Iranische Handelsbank AG, only to voluntarily halt that agreement in April. (Source: Bloomberg)   Socialize this Subscribe to our RSS feed to stay in touch and receive all of TT updates right in your feed reader
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| Last Updated on 07 August 2011 15:52 |