New mechanism to help Iraq pay debts to Iran

Business Materials 7 February 2019 22:20 (UTC +04:00)

Tehran, Iran, Feb. 7


Iraqi Finance Minister Fuad Hussein has announced the country will pay its debts to Iran by the establishment of a new financial mechanism agreed by the two countries.

Referring to Iraq’s next year budget plan, Hussein said, “According to the budget plan, we can solve the gas and electricity debt problem,” Trend reports citing IRNA.

Governors of the central banks of Iran and Iraq signed an agreement on a payment mechanism on Tuesday, which is to facilitate the settlement of Baghdad’s debts to Tehran.

The deal, signed in Baghdad, mainly facilitates the settlement of Iraq’s debts to Tehran over gas and electricity imports.

Governor of the Central Bank of Iran Abdolnaser Hemmati visited Baghdad in a two-day trip and after negotiations the two sides signed the payment mechanism deal.