Iraq pays out part of debts for energy imports: Central Bank of Iran

Baghdad’s imports of gas and electricity from Iran equal four billion dollars however it’s not been able to pay the price due to financial restrictions caused by renewed US sanctions.

12 March 2019
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Baghdad’s imports of gas and electricity from Iran equal four billion dollars however it’s not been able to pay the price due to financial restrictions caused by renewed US sanctions.

Governor of Central Bank of Iran Abdolnaser Hemmati, left, stands next to his Iraqi counterpart, Ali al-Alaq. (Photo: сbi.ir)

Iraq has cleared part of its debts for importing Iranian gas and electricity, Iranian media report. The moves came on the first day of Iranian president’s state visit to the neighbouring country.

The first installment of Iraqi debts has been deposited to an account at the Central Bank of Iran (CBI), according to the bank that hasn't given more information about the exact amount. 

Iraq imports four billion dollars worth of gas and power from Iran. Non-oil products make up the remaining eight billion dollars of Iranian exports to its western neighbour.

Baghdad imports two billion dollars worth of gas from Iran to feed its energy-starved power plants, according to Iranian Petroleum Minister Bijan Zanganeh. Also, Iran also sells 1,200 megawatts of power to the Arab country.   

Abdolanser Hemmati, Governor of Central Bank of Iran reached an agreement with his Iraqi counterpart Ali al-Alaq in early February to create euro and dinar-based accounts to facilitate Iraqi payments of its debts to Iran.   

Governor of Central Bank of Iran Abdolnaser Hemmati signs agreement with his Iraqi counterpart, Ali al-Alaq about financial agreement., 6 Feb 2019 (Photo: Central Bank of Iran)

During his negotiations with governor of Central Bank of Iraq on Monday, the two financial officials discussed how to implement previous accords as well as facilitating credits for Iranian exporters.

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