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  • KITA official: We can equip Iran with technology



    by : Mohammad Ali Saki

    TEHRAN - Iran-Korea Business Forum was held in Tehran on February 29, wherein as many as 500 Korean and Iranian participants from 300 companies were present.

    One of the main organizers of the event was Korea International Trade Association (KITA), whose Executive Vice President Chairman Junggwan KIM delivered the opening speech.

    According to the association’s website, KITA serves a diverse range of roles, including providing hands-on support to trade companies, drawing trade cooperation from the private sector, formulating new trade strategies, nurturing trade professionals, and building trade infrastructure.

    In a short exclusive interview with the Tehran Times, Junggwan KIM has answered three questions. Here is the text of the interview.

    TT: One of the main challenges the Iranian economy faces is to join the Word Trade Organization (WTO). How can KITA smooth the path given that Iranian companies need modern technology to compete with global rivals if the country joins the WTO?

    A: Joining the WTO has its own regulations and conditions. But I think we can equip Iran with technology and then, this is up to the Iranian partners to build upon the technology, promote it and re-apply it in their own products or develop it.

    TT: Given that Korean companies left Iran during the sanctions era, now they are a bit doubtful about partnership with Koreans. For this reason Iran is now looking for long-term contracts. What do you think about it?

    A: We had no other choice but to leave Iran’s market, as Korean companies themselves have bilateral relations with their American counterparts and if we violate the game, the U.S. imposes sanctions against us. So, that was our reservation. However, we are now pursuing long-term cooperation with Iran because we have a common goal.

    TT: Have you developed your own development model or does it come from other countries’ schemes?

    A: At early stages, Korea gained experience by learning from foreign countries, similar to what Iran is doing now. At later stages, advanced educational system in Korea and the determination of Korean people helped develop our domestic model of economy.

  • Entering Iran's Stock Market

    With a market cap of about $90 billion, Iran’s stock market is fifth-largest in the Middle East. The lifting of sanctions allows the country to compete for investor attention with Saudi Arabia, which opened the region’s biggest stock market to direct foreign ownership seven months ago.
    While investing on Tehran’s bourse was already legal for many international investors, financial sanctions placed on the banking system made it almost impossible to transfer money in and out of the country. The majority of those sanctions have been removed after an international deal over Iran’s nuclear ambitions, allowing the nation’s banks to reconnect to the Swift system for international financial transactions.
    Although buying shares hasn’t been prohibited for Europeans, investing in certain industries, such as energy, has been off limits.

    How can international investors enter?

    There are two ways to access Iranian equities: invest directly, or go through local funds, said Parham Gohari, co-founder of Frontier Partners, a professional-services firm advising multinationals on entering Iran.
    Investing directly requires the use of a broker based in Tehran, as well as a foreign trading license and investment code from the Securities and Exchange Organization. The code is needed to buy and sell securities in Iran.
    The second way is to use a local fund. Several companies have been preparing foreign investment funds for Iran in anticipation of the lifting on sanctions. An index-linked ETF for foreigners already exists and a small fund exposed to sanctions-proof companies started in December.
    “There are two or three bodies involved if you want to get through the direct route," Gohari said from Dubai. When using a local fund, “you would have to do your homework and understand the performance of some of these companies over the last few years," he said.
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  • Iran back in vogue

    Australia’s exports to the Islamic Republic of Iran were, at one time, valued at over AUD 1 billion and covered a range of industrial and consumer goods and services. After years of nuclear based sanctions, Australia’s total trade and investment with Iran is valued at less than AUD 300 million and is limited to wheat and related products. In the last two months the United Nations and Australia have eased many of the sanctions against Iran, which will open new trade and investment opportunities for Australian businesses looking to Iran as a potential market.

    In January the UN announced that it would remove the nuclear sanctions against Iran and the Australian Government immediately followed by suspending or removing most of its autonomous sanctions against Iran and Iranian businesses. The lifting of these sanctions is welcome news to Australian businesses interested in gaining access to Iran’s 80 million consumers and anticipated infrastructure and energy projects. However, businesses from across Europe, North America and Asia are equally eager to access the Iranian marketplace. Australian businesses need to understand the commercial and legal frameworks in Iran, and the Australian Government needs to facilitate and protect Australian trade and investment with Iran.

    In this Investment Update, Moulis Legal Partner Christopher Hewitt and Associate Alistair Bridges look at the impact on Australian businesses of lifting Iran’s nuclear sanctions and how the Australian Government can provide critical protection to Australians doing business in Iran through investor state dispute settlement.

    Turning a page on nuclear sanctions

    Since 2008 Australia has enforced a combination of UN and independent sanctions restricting trade and investment with Iran, including prohibitions on trading most goods, establishing companies and many financial transactions. In January 2016 the Australian Government announced that it will amend the Charter of the United Nations (Sanctions-Iran) Regulations1 to remove nuclear based financial and business sanctions previously imposed by the UN. The Government also suspended sections of the Autonomous Sanctions Regulations2 to remove the vast majority of the existing restrictions on trade and investment between Australia and Iran. These changes were necessary steps to reopening commercial relations between Iran and Australia.

    Then on 27 February the Australian Government amended the Money Laundering and Counter-Terrorism Financing (Iran Countermeasures) Regulations3 to remove the obligation that financial institutions obtain a permit for transactions with Iran exceeding AUD 20,000. This legislative change is critical because it will facilitate necessary small and medium business transactions between the two countries. This change means that Australian banks can begin providing and accepting transactions, electronic transfers and negotiable instruments between Australian and Iranian businesses. Importantly, in order for Australian banks to undertake these transactions and transfers they must first establish enhanced customer due diligence processes between Australia and Iran, which may result in some delays before Australian banks are ready to undertake all types of financial transactions with Iran.

    Under the changes the following prohibitions on trade and investment have been removed:

        imports into Australia of crude oil, petroleum, petrochemical, natural gas and precious metals from Iran;
        exports to Iran of a range of goods, including transport and storage containers for oil and gas, equipment and technology for oil, gas and petrochemicals, precious metals, Iranian bank notes and some naval and shipping technologies;
        two-way trade in technical services, certain financial services and export services;
        investment by Australians into Iranian companies in the oil, gas and petrochemical sectors;
        investment by Iranians into Australian companies in the oil, gas and financial services sectors.

    Importantly, the law changes will remove most restrictions on the establishment of representative offices, subsidiaries and correspondent banking relationships with financial institutions. This is a critical commercial change that will allow Australian businesses to establish corporate entities and offices in Iran in order to gain access to the Iranian market and new commercial opportunities.

    That said, it is important to understand that the regulatory burden facing entities wishing to do business with, or in, Iran is merely mitigated, not lifted completely. Although some of the sanctions have been suspended (albeit, perhaps only temporarily), Australia will continue to impose restrictions on a number of activities, including the sale and export of arms and related goods to Iran, and will maintain its list of designated parties subject to asset freezing orders, albeit in a reduced form. Violating a sanction law is a strict liability offence. Accordingly, any Australian entity intending to do business with, or in, Iran will need to ensure that its activities do not breach Australia’s remaining operative Iranian-targeted sanctions.

    New opportunities for Australian businesses

    The Australian Minister for Foreign Affairs has stated that the:

        Easing of these sanctions will ensure that Australian business is not disadvantaged in pursuing opportunities in Iran.4

    While this statement is accurate, the commercial reality is that a large number of businesses from countries across the globe are now targeting Iran as a marketplace that is eager for major infrastructure investment, world-class services and an influx of goods. The Australian Government needs to do more for Australian businesses than simply get out of the way of investment.

    After many years of sanctions, it is unsurprising that Australia does not currently have a formal trade and investment treaty with Iran. In 2015, the Australian Minister for Foreign Affairs visited Iran to discuss future opportunities for bilateral trade and investment between Australia and Iran, specifically in the services, mining and technology sectors. During that visit, the Minister intimated an openness to future bilateral trade and investment relations.  Australia now has an opportunity to act on those good intentions and provide Australian businesses investing in Iran with substantive protections.

    Despite its commercial isolation for many years Iran has relatively sophisticated foreign investment regulations that provide foreign businesses and investors with some investment protection. In 2002 Iran introduced The Foreign Investment Promotion and Protection Act (known as the “FIPPA”), which is a progressive, modern foreign investment law that provides legal protection for investment in Iran.

    The FIPPA states that:

        Foreign investments … will have the same rights, protections and facilities available to local investments.5

    Critically, under the FIPPA, foreign investment in Iran is protected from illegal and unfair treatment by the state:

        Foreign investments shall not be subject to expropriation or nationalisation, unless for public interests, by means of legal process, in a non-discriminatory manner, and against payment of appropriate compensation on the basis of the real value of the investment immediately before the expropriation.6

    These protections are significant and demonstrate Iran’s eagerness to encourage and facilitate foreign investment. However, these protections are only valuable if they can be enforced and if foreign businesses are confident that they have a fair and impartial mechanism for enforcing these rights. Under the FIPPA if a foreign business has its investment expropriated or does not receive equivalent protection as a local business then it can enforce its rights in the Iranian courts. Only businesses from countries that have agreed to investor state dispute settlement with Iran have access to independent arbitration. This does not include Australia.

    International dispute resolution professionals have long recognised the inherent conflict in a country’s national courts hearing claims against the national government by a foreign investor. Investment disputes against a national government require assessment of government policy and actions. For example, under the FIPPA an investment dispute may require an assessment of what constitutes the ‘public interest’ or ‘appropriate compensation’. These assessments are best undertaken by an independent arbiter whose decision is final, binding and enforceable.

    For this reason, the Australian Government has agreed to investor state arbitration provisions in various free trade agreements and bilateral investment treaties with other countries. Australians currently have access to investor state arbitration in 27 countries and that number will increase shortly.7  Investor state arbitration provides foreign investors with recourse to an independent arbiter to hear claims against a national government. As it currently stands, Australian businesses investing into Iran have no such protection and would be forced to take an investment dispute through Iran’s own courts.

    Starting a new chapter: an Australia/Iran bilateral investment treaty

    Australia has 27 bilateral investment treaties, free trade agreements and investment promotion and protection agreements with various countries. Australia is also currently negotiating a number of new agreements, including the proposed free trade agreement with the Gulf Cooperation Council that includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

    Iran currently has 52 bilateral investment treaties, which provide individuals and businesses from those countries with greater access, protection and enforcement rights than is provided under the FIPPA. Countries with a formal bilateral investment treaty with Iran include the financial powers of Germany, China, and France, and other smaller countries like Zimbabwe, North Korea and Bangladesh.

    Clearly, Australia would not be breaking new ground by establishing formal commercial relations with Iran and entering into a bilateral investment treaty. In fact, Australia needs to promptly take steps to engage with Iran to ensure that Australian businesses are not left behind as American, British and European businesses move swiftly to take advantage of new opportunities in Iran.

    A review of the Iran Germany Bilateral Investment Treaty from 2004 (“the German Treaty”) shows that Iran is open and willing to enter into a treaty that grants real protection to foreign businesses and investors. Under the German Treaty, German businesses and investors are granted national treatment and most favoured nation status in Iran. The German Treaty also provides for the facilitation of money transfers relating to investment and protects the international transfer of business profits. Critically, the German Treaty also provides that any dispute between Iran and a German investor will be settled by international arbitration and that any award will be enforceable at law. This provides Germans doing business in Iran with real and enforceable protection against unfair treatment, expropriation and discrimination. It is therefore unsurprising that following the lift of the UN sanctions a German law firm was one of the first foreign businesses to establish offices in Tehran.8

    By negotiating and agreeing a bilateral investment treaty with Iran, the Australian Government could provide Australian businesses with the significant added protection of independent arbitration of investment disputes. Australian businesses could have level footing with businesses from Germany, and other countries, by obtaining similar protections as are provided in the German Treaty.9  We were reminded this last week of the importance of sovereign risk protection for foreign investors as Zimbabwe announced that it would expropriate and nationalise foreign investment in its diamond mines. In the context of the past volatility of Iran, and the potential sovereign risk to investment, the added protection of independent investor state arbitration would be of substantive value to Australians doing business in Iran.

    Iran is open for business, and Australians should be looking to take advantage of the opportunities for investment and trade in goods and services. Despite the recent changes Australian businesses still need to take great care when undertaking trade and investment with Iran and ensure they have all possible legal and contractual protection and the Australian Government should look to add to that protection in the near future so Australians are not left behind.

  • Iran’s latest MoUs: shipping, power and export finance

    Iran’s latest MoUs: shipping, power and export finance
     by Melodie Michel

    The Iranian government has been busy restoring trade and investment relationships since the lifting of nuclear-related sanctions on January 16, 2016. Here is a round-up of the latest economic agreements signed by the country:

    Shipping: Oman and Switzerland come on board

    Swiss-based shipping company MSC has signed an MoU with the Iran Ports and Maritime Organisation (IPMO) to increase port calls at Bandar Abbas, Chabahar and Bandar Imam. The agreement also involves MSC vessels, which returned to Iran in January after six years, carrying shipments to Iran from international ports, and effectively opens up Iranian investment opportunities to Swiss shipping firms. It was agreed during a three-day visit by Swiss President Johann Schneider-Ammann at the end of February.

    Still in the shipping sector, Oman’s Port of Salalah has signed an MoU with Iran’s Shahid Rajaee and Chabahar Ports, to develop and promote an all-water route between the three ports, representing a roundtrip of 2,152 nautical miles. This will ultimately support increased trade and investment between the two countries.

    Power: Far-reaching deal with Siemens, collaboration with Ukraine

    On March 2, Siemens signed a number of agreements with the Iranian MAPNA Group in order to modernise the country’s energy infrastructure. The MoUs include a licence agreement under which MAPNA will acquire technological know-how to manufacture Siemens F-class gas turbines in Iran. According to Siemens, the parties will co-operate to deliver more than 20 gas turbines and associated generators over the next decade.

    As a first project under the licence agreement, the companies signed a contract for the Bandar Abbas power plant, for which Siemens will deliver two F class gas turbines and generators.

    The two companies also signed an MoU to jointly develop the roadmap for the extension and optimisation of the overall Iranian power and electrification system, including power generation, transmission and distribution topics, but also providing solutions including EPC (engineering, procurement and construction) as well as financing options.

    A Ukrainian delegation arrived in Tehran on Monday (March 7), and had reportedly signed a number of agreements with the Iranian government, including one aiming to resume bilateral energy co-operation. This will help increase the efficiency of Iranian power plants and high-voltage transmission lines.

    The two countries are also said to have signed an MoU for the expansion of economic co-operation in the fields of agriculture, metals, mining and aviation.

    Export finance: Germany and UK work towards reopening

    Iran’s export credit agency (ECA), the Export Guarantee Fund of Iran (EGFI), and its counterpart, UK Export Finance (UKEF) signed an MoU on March 5 to enhance trade and economic co-operation between the two countries.

    Under the MoU, the two ECAs will work together to identify opportunities for trade in capital goods, equipment and services. The agreement also allows the parties to co-finance and co-guarantee financing for projects or contracts in third countries involving British and Iranian exports.

    Iranian media have also reported that Iran had agreed to clear its US$560mn of cover debt with Germany’s ECA, Hermes, by September, before Germany resumes providing guarantees for German exports to the country.

    These latest agreements follow the ones signed at the end of January with France’s Coface and Italy’s Sace on outstanding payments owed by Iranian debtors due to the sanctions that largely blocked money transfers. They are expected to pave the way for the reopening of ECAs’ guarantee lines and a return to business as usual in Iran.

  • JGC looking to land plant contracts in Iran this year



    Iran is poised to build new oil refineries and petrochemical plants, now that it has been freed from international sanctions. Experts warn that investing in the Middle Eastern country is still risky, in part due to sectarian tensions with neighbors such as Saudi Arabia. Yet companies are leery of another risk, too -- missing out on huge opportunities.

    Yoshihiro Shigehisa

         JGC, Japan's leading plant builder, is one company looking at ways to capitalize on this potentially lucrative market. The Nikkei spoke with Yoshihiro Shigehisa, JGC group's chairman emeritus, about the business outlook in Iran.

    Q: What are your expectations for post-sanctions Iran?

    A: This is an opportunity to tap a big, promising market. Iran has one of the largest populations in the Middle East, with nearly 80 million people. It has said it will raise its crude oil output in two stages, by 1 million barrels a day. We pulled our employees out of the country because of the sanctions, but we plan to station one or two in Tehran by spring. We expect growing demand for plants, and we hope to strike some deals by the end of this year.

         There are opportunities for other Japanese businesses, not just ours. Due to the sanctions, the government has limited funds for new projects. For large endeavors, Tehran will seek to secure loans or work out other financial arrangements with its partners.

    Q: Are you interested in other fields of business in Iran, besides the resource sector?

    A: We want to invest in ways that will help the country to develop. Nothing has been decided yet, but we may consider investing in hospitals and agriculture, along with power plants.

    Q: Earlier this year, Saudi Arabia cut diplomatic ties with Iran. Are you worried about the deepening religious conflict?

    A: My sense is that the bilateral relationship will not deteriorate further. Falling crude oil prices are hitting both economies. They should be aware that this is not the time for them to confront each other.

         But it is also true that we should be cautious when making deals with Iran, to avoid compromising our relationship with Saudi Arabia. I recently visited a Saudi customer I have known for years. Although this customer might not welcome us doing business with Iran, the impression I got was that they would accept it. 

  • Oman Minister meets with Dr.Hosseini



    Qais Mohammad bin Yusuf, Oman's Minister of Trade, Industry and Investment met and talked with Seyyed Shamsuddin Hossein, the head of the Special Commission for Growth and Development of Production and Monitoring the Implementation of Article 44 of the Constitution of the Islamic Council, at noon (Monday, May 18).

    At the beginning of this meeting, the head of the special commission for the jump and boom of production and the principle 44 of the Islamic Council assessed the closeness and strength of relations between FIMA as continuous and stable and said: "Iran and Oman have always had close cooperation and continuous relations with each other and all-out efforts The government and parliament of the two countries have led to the deepening and development of relations in the political and economic fields.

    Hosseini pointed out: "The indicators of the cooperation between the two countries are moving forward, but the economic relations between the two countries have not progressed in accordance with the political relations, and the efforts of the two countries to improve the level of economic cooperation equal to the friendly and political relations are important."

    The head of the Special Commission for Growth and Development of Production of the Islamic Council added in the continuation of this meeting: "The Islamic Republic of Iran is looking for convergence between regional and neighboring countries".

    Referring to the developments in the region and Iran's cooperation agreement with some countries in the region, he said: "The Islamic Republic of Iran has always welcomed the development of cooperation with the Persian Gulf countries and the establishment of regional cooperation in the direction of peace and international stability."

    Referring to the readiness of our country to cooperate with Oman in various fields, Hosseini pointed out: "Iran has made significant progress in various industrial fields such as energy, industry, medicine and medical equipment, and the field of technology, and the interaction with Oman in these fields has been successful. It will benefit both countries."

    The representative of the people of Tunkabon and Ramsar in the Islamic Council called for the promotion of parliamentary relations, especially in the economic field, and considered the role of parliamentary interactions between Iran and Oman in strengthening the relations between the governments to be effective and to expand the parliamentary relations between the two countries. And he emphasized the readiness and support of the Islamic Council for the approval of the agreements signed by the governments of the two countries.

    In this regard, he emphasized: "Parliamentary movements in the fields of joint and special commissions and chambers of commerce of the two countries will strengthen the level of bilateral relations."

    Shamsuddin Hosseini stated the importance of improving the level of relations between Iran and Oman in line with the strategic goals and in the direction of advancing bilateral relations and supporting the government and people of the two countries and emphasized the need for the increasing development of economic cooperation.

    Qais Mohammad bin Youssef, Minister of Trade, Industry and Investment of Oman, expressing his satisfaction with the warm reception he and his accompanying delegation received in the Islamic Council, called for the promotion of commercial and economic cooperation between Iran and Oman, and expressed hope that the level of bilateral relations in parliamentary affairs would improve. And the governments of the two countries should be strengthened even more.

    By stating Iran's industrial, pharmaceutical and technological advances and achievements, he stated his country's serious determination to strengthen relations with Iran, and for the development of joint cooperation, he considered the industrial capacities of our country as a basis for promoting trade exchanges and deepening cooperation.

    The Minister of Trade, Industry and Investment of Oman, while inviting the members of the Special Commission for Growth and Development of Production of the Islamic Council to Muscat, said: "Strengthening parliamentary relations and exchanges is the source of improving the level of commercial and economic relations and improving the level of interactions between the two countries. It will be opened between Oman and Iran.

    It is worth mentioning that in addition to the president of the Chamber of Commerce and the Omani ambassador and the economic delegation of that country, Dr. Nouri Qazaljeh, Dr. Ali Akbar Karimi, Dr. Mohammad Rashidi, Dr. Reza Taqipour, other members of the commission were also present in this meeting.

  • Singapore, Iran ink bilateral treaty on investment


    Iswaran signs agreement in Tehran as part of effort to explore business opportunities

    Singapore has moved quickly to sign an investment treaty with oil-rich Iran to support Singapore firms investing in an economy that is emerging after the recent lifting of global sanctions.

    The treaty offers a legal framework to protect investors and promote bilateral investments.

    Minister for Trade and Industry (Industry) S. Iswaran signed an Agreement on Reciprocal Promotion and Protection of Investments, also known as a bilateral investment treaty, with Iran's Minister of Finance and Economic Affairs Ali Tayyebnia in Teheran yesterday.

    Singapore is the second country, after Japan, to sign a bilateral investment treaty with the Middle Eastern nation after international sanctions were lifted in mid-January.

    "We are here now to deepen the economic collaboration between our two countries," Mr Iswaran told the media after the ceremony.

    "We see significant opportunities to do so because of the size of the market in Iran and in the region, and the capabilities of the people.

    "For Iranian businesses, there are interesting opportunities in Singapore and through Singapore into South-east Asia and the larger market of Asia," he added.

    Mr Iswaran arrived in Teheran on Sunday for a three-day visit to explore new business and investment opportunities. His trip coincides with a one-week mission by the Singapore Business Federation (SBF) to the Iranian capital.

    Mr Iswaran also met Iranian Minister of Industries and Business Mohammad Reza Nematzadeh and Minister of Cooperatives, Labour and Social Welfare Ali Rabiei.

    With this agreement, Singapore investments will be treated as favourably in Iran as any other investments - foreign or local. And businesses can transfer capital and returns between the two countries without obstacles.

    The treaty also provides Singapore investors with the option to resolve investment disputes through international arbitration.

    The Ministry of Trade and Industry said Singapore's bilateral trade with Iran was $6.6 billion in 2011, before the sanctions were imposed. It fell to $2.6 billion in 2012, after the sanctions kicked in. Last year, trade stood at $171.4 million, with Singapore exporting $158 million worth of goods to Iran, while imports from Iran to Singapore amounted to $13.4 million.

    Singapore firms have shown renewed interest in the oil-rich country, which is just re-opening its doors after a prolonged period of under-investment.

    A total of 51 firms from various sectors, including oil and gas, petrochemicals, logistics and information communications technology, have been in Teheran since last Friday, gaining first-hand knowledge about the business environment and investment opportunities.

    This is the SBF's fifth delegation to Iran, and the largest group that it has taken to the Middle East so far.

    The delegation comprises two main groups - companies that were previously doing business in Iran and are now seeking to re-establish dealings after the lifting of the sanctions, and companies that are completely new to the market.

    "Singapore companies are known for our quality, reliability and the service we deliver... but competition is greater than before and others are running very fast," said Mr Teo Siong Seng, SBF chairman and leader of the business mission.

    Singapore businesses are facing stiff competition from South Korean and European companies, which are pursuing deals in Iran, he noted.

    According to the Teheran Times, South Korea on Sunday signed a memorandum of understanding with Iran to provide €5 billion (S$7.7 billion) in financing for infrastructure, development and manufacturing projects in the country.

    Many of these businesses tend to be bold and are willing to put in huge investments. Singapore companies, however, tend to be more careful, said Mr Teo.

    "We could start in a smaller way, but we should start to see some activities going forward," he added.

  • Swiss Team, CBI Examine Roadmap

    The governor of the Central Bank of Iran has called on the government of Switzerland to help introduce Iran’s banking sector to Swiss business leaders and entrepreneurs to help build cooperation between the two countries in the post-sanctions era.
    Pointing to the banking relations between the two sides in the past, including during the nuclear-related international sanctions, Valiollah Seif welcomed the resumption of bilateral ties to the pre-sanctions level.
    During a meeting with a Swiss economic delegation at the CBI headquarters in Tehran, Seif asked Swiss authorities to remove Iran from the list of countries that allegedly finance terrorism.  
    “In light of the anti-terrorism bill passed by the Majlis we ask Switzerland to take the necessary measures to remove Iran from the list of states (accused of) sponsoring terrorism and the high-risk countries,” the CBI website quoted him as saying late Saturday.
    Iran’s Parliament passed a bill in February 2010 to counter terrorism financing, but due to some flaws, the Guardian Council –a vetting body which oversees the passage of laws -- sent the proposal to the judiciary to resolve some aspects it said were ambiguous. The amended bill is still pending final approval.
    “We suggest regular meetings between the two countries’ banks to familiarize you with Iran’s progress in anti-money laundering measures and enhance banking ties,” Seif said.

      Anti-Money Laundering Agreements
     Iran’s anti-money laundering initiatives, consists of about 45 technical ordinances concerning banks, insurances, stock market, customs and notary publics. Iran has also signed six anti-money laundering agreements with other countries to share knowledge and experience in relevant fields.
    Seif said Iranian banks have been trying to improve their operations in accordance with international standards, including Basel II and III. “The Majlis has also ratified anti-money laundering laws and laws against financing terrorism.”
    Basel II is an international business standard that requires financial institutions to maintain enough cash reserves to cover risks incurred by operations. Basel III is a comprehensive set of reform measures designed to improve the regulation, supervision and risk management within the banking sector.
    Seif noted that some of the terms in Iran’s nuclear accord with the six world powers last July need to be clarified .“The central bank has formed a special committee to clarify any misunderstanding about the nuclear agreement concerning banking relations with Iran.”
    The Swiss delegates may refer to this committee should they have any questions, Seif said.

      Issues Clarified
    René Weber, Swiss Head of Markets Division at the State Secretariat for International Finance told the meeting that his country is keen on enhancing ties with Iranian banks and provide training and technical knowledge as well as boost cooperation in legal and financial areas.
    “In the meetings so far many issues have been clarified,” he said, welcoming Seif’s proposal for holding joint meetings.  “Such events can help expand corresponding banking relations between the Iran and Switzerland.”
    Weber invited CBI officials to visit Switzerland to prepare the grounds for normalization of banking relations between the two sides.
    A delegation of Swiss officials, led by President Johann Schneider-Ammann arrived in Tehran Saturday for an official visit. The two countries released a joint statement on Saturday, outlining a roadmap to expand cooperation.
    It set out the details of the roadmap in 13 articles covering a wide range of areas, including politics, trade and finance, transport, agriculture, tourism, science, research and technology, environment, human rights, migration and consular relations.

  • What is working capital finance?



    Phd in Finance
    Investment&Finance Advisor for Real Estate

    Working capital finance is business finance designed to boost the working capital available to a business. It's often used for specific growth projects, such as taking on a bigger contract or investing in a new market.

    Different businesses use working capital finance for a variety of purposes, but the general idea is that using working capital finance frees up cash for growing the business which will be recouped in the short- to medium-term.

    There are many different types of lending that could be considered working capital finance. Some are explicitly designed to help working capital (whatever industry you’re in), while others are useful for specific sectors or requirements.

    How to raise working capital finance
    Working capital is the amount of cash a business can safely spend. It’s commonly defined as current assets minus current liabilities. Usually working capital is calculated based on cash, assets that can quickly be converted to cash (such as invoices from debtors), and expenses that will be due within a year.

    What is the formula for working capital?
    For example, if a business has £5,000 in the bank, a customer that owes them £4,000, an invoice from a supplier payable for £2,000, and a VAT bill worth £4,000, its working capital would be £3,000 = (5,000 + 4,000) - (2,000 + 4,000).

    Liquid cash
    Working capital is seen as ‘working’ because the business can use it — in other words, it’s not tied up in anything long-term. Whether you want to buy stock, invest in the business, or take on a big contract, all of these activities require working capital — cash that’s quickly accessible.

    On the other hand, if your business is profitable but has big bills to pay soon, your working capital situation could be worse than it might seem — or could even be negative.

    How is working capital financed?
    Here are some of the more common types of working capital finance.













    How is working capital efficiency calculated?
    Working capital efficiency is determined using the working capital ratio. This is a business’ current assets divided by its current liabilities. It informs investors and others as to whether the company has the current means to meet its short-term obligations.

    What is a good working capital?
    Typically, a working capital ratio between 1.2 and 2.0 is considered satisfactory. A working capital ratio of below 1 suggests potential cash problems.

    What happens if working capital is too high?
    Higher doesn’t always mean better. For instance, a very high working capital ratio could indicate that a business isn’t investing its surplus capital into its growth, but is instead missing opportunities by letting its cash and assets lay dormant.

    Do you want high or low working capital?
    Companies should always aim for healthy working capital. A business’ working capital can fluctuate - for instance, it may experience seasonal peaks and dips.

    What kinds of businesses require the most working capital?
    One company might require more working capital than another because expenses and business needs vary from one industry to another. Take a retail business for instance. It may need a lot of available cash to purchase inventory. A tech company, on the other hand, might not - especially if it operates remotely.

    How do you control working capital?
    To help maintain a healthy flow of working capital, businesses can manage inventory effectively, always pay suppliers on time, pay debts on time, fine tune the accounts receivables process and, if needed, consider financing options.

    There are many types of working capital financing available, and choosing the right product depends on your sector and circumstances, as well as what you're trying to achieve. To find out more about working capital financing, browse the related articles below or get in touch.

کتاب عملیات بانکی در عرصه بین الملل -سرفصل ها،ضمائم ،توصیه صاحب‏نظران ارزی و مدیران ارشد بانکی

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