Iraq pledges to accelerate Iran’s access to frozen assets
One of the branches of the Trade Bank of Iraq (TBI). Photo: Al-Arabiya News
Baghdad (IraqiNews.com) – The Iranian Minister of Economy, Ehsan Khandouzi, revealed on Wednesday that Iraq has pledged to facilitate Iran’s access to its frozen assets in Iraq, according to the Islamic Republic News Agency (IRNA).
“In a recent meeting in Baghdad between the governors of the central banks of Iran and Iraq, the Iraqi side promised to devise a mechanism so Iran can use the $10 billion of its assets in the country to import goods,” Khandouzi told IRNA.
The Head of the Iran-Iraq Joint Chamber of Commerce, Yahya Al-Eshaq, said on Monday that Iraq has paid all dues of $10 billion to Iran, Al-Arabiya News reported.
Al-Eshaq elaborated that Iraq has paid its overdue debts to Iran through the Trade Bank of Iraq (TBI), and the two countries have agreed that the money will be used for the purchase of goods that are not included in the embargo imposed on Iran, such as medicine, IRNA reported.
Iraq agreed three weeks ago to pay $2.76 billion in gas and electricity debts to Iran after the United States granted an exemption from sanctions imposed on Iran.
Talks between the Iraqi Foreign Minister, Fuad Hussein, and US Secretary of State, Antony J. Blinken, during the Global Coalition to Defeat ISIS Ministerial Opening Session held in Riyadh, led to an arrangement regarding financial dues between Iraq and Iran, according to Sky News Arabia.
The Iranian Minister of Oil mentioned last May that the two countries agreed to extend two contracts to supply two main power plants in Baghdad and Basra with gas from Iran for five years, according to Mehr News Agency.
Iraq heavily relies on gas imports from Iran but has recently invested in many projects to start taking advantage of the associated gas being flared in oil facilities in the country.