Which country to host special purpose vehicle for Iran?

Business Materials 18 November 2018 13:08 (UTC +04:00)

Tehran, Iran, Nov.18


The impact of the special purpose vehicle on all economical activities in public and private sector of Iran is undeniable, Member of Tehran Chamber of Commerce Jamshid Edalatian, told Trend.

“A code will be issued by this system for all the transactions and payment orders. In the absence of this code, transferring money would be problematic," he added.

“This is the first time that Europe has decided to launch such system. But some difficulties can make it hard to set it despite the promises," he said referring to the delay in setting up the SPV.

According to the official, some countries have not approved to play host for the SPV.

"The European countries are actually trying to refrain from the threat of US sanctions or hurting relationship with this country, thus until today no country has approved to become host for this system. However it seems Luxembourg will be the hosting country for SPV, it’s a small, neutral country with many banks operating there, and it is likely that the country will accept the risk,” he noted.

EU officials intend to create special purpose vehicle (SPV) to eliminate dependency on the US and the Society for Worldwide Interbank Financial Telecommunication (SWIFT). It would be a special payment channel to do business with Iran and bypass US sanctions against the country.