Iran Settles €500m Debt to Germany’s Hermes

Iranian Ambassador to Berlin Ali Majedi said the Islamic Republic has cleared its debt to Germany’s Hermes insurance company.

Majedi announced on Sunday that Iran has paid off its 500 million euros ($569 million) debt to Hermes, a German government arrangement that protects German companies if foreign debtors fail to pay.

He added that the payment has removed obstacles in the way of Tehran-Berlin business ties and that the two countries’ banks can now boost their cooperation.

Earlier, the head of the German banking association said rekindling business ties with Iran needs “patience”.

“Rebuilding ties with Iran requires patience,” Michael Kemmer said in April.

“To begin with, the transactions regimen has to work again before the next step of financing projects can take place,” he added.

Elsewhere in his remarks, Kemmer referred to Tehran’s Hermes debt to Berlin and said banking ties between the two countries will revive only after Iran pays its debt to Germany.

One of the main reasons that the Islamic Republic, despite a lasting nuclear deal between Tehran and world powers, had not been able to repay its debts to the German firm was due to difficulties in working with foreign banks.

Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 finalized the nuclear deal.

While the JCPOA came into force in January, Iran still has still problems in its banking transactions with major foreign banks.

(Source: Tasnim, under Creative Commons licence)

No comments yet.

Leave a Reply