Iran's private sector companies demand Iraq to pay its debts

Business Materials 2 January 2021 17:00 (UTC +04:00)
Iran's private sector companies demand Iraq to pay its debts

BAKU, Azerbaijan, Jan.2


Contractors and companies exporting Iran`s engineering services to Iraq, demand up to $800 million from Iraq`s state-owned companies, the secretary of the Iranian Association of Exporters of Technical and Engineering Services Bahman Salehi Javid said, Trend reports via ILNA.

"These funds can even be transferred via suitcase trade, so the FATF isn't an obstacle," he said.

Salehi said that previously, contracts were signed based on the US dollar, but 'the Iraqi side put on some pressure to close certain contracts in dinars'.

"With the devaluation of the Iraqi dinar, Iranian contractors will lose profits," he said. "In addition, the Iraqi side do not pay its debts and the delay continues."

Salehi says that Iran's government should use diplomacy to deal with Iraq, and make sure the debts are paid to the private sector companies.

Speaking of Iran's operation in Syria, Salehi said the situation there is similar, but 'with some differences'.

"Iraq's long common border with Syria makes Iraq important to us," said Salehi Javid. "Syria has a good market, with low political risks. Iran has made a lot of investments in this country and provided loans in several stages."

"Our companies have implemented projects in Iraq and Syria," he said. "Financially, there are fewer problems with the Syrian government, but Iranian companies in Syria are weakening, due to the presence of countries such as Russia, Turkey, China and even European countries such as Great Britain, as well as South Korea and Japan."