Iran, Iraq need to reform financial channel, deal with remaining debts

Business Materials 3 May 2021 14:43 (UTC +04:00)
Iran, Iraq need to reform financial channel, deal with remaining debts

TEHRAN, Iran, May 3


It is necessary that Iran and Iraq reform their trade transaction course and the existing financial channel, said a member of Iranian parliament's industrial commission Rouhullah Izadkha, Trend reports via Mehr News Agency.

"There should be an agreement between Iran and Iraq outside of the US monitoring, so that Iraq could pay its debts to Iran, and Iran could freely use its capacities, and initiate its power export to Iraq," said the MP.

"Iraq is one of top destinations for Iran's energy export and the country annually spends billions to export electricity and gas to Iraq and in return, Iraq should pay for the commodities," he pointed out. "But due to US, the money has been blocked and it can not be returned to Iran," he said.

"The financial channel has prevented Iran to use the export revenues and they have practically been blocked in Iraq," he said.

"The main solution for Iran to continue power exports to Iraq is a new agreement, around the US, so Iraq can pay its debt to Iran and our country can use its resources from power and gas export," he said.

Izadkha noted that there's need for another solution for Iran to purchase its required commodities by using the money that could help balance trade.

"On the other hand, Iran and Iraq could use this resource to finance Iran's projects on reconstruction in Iraq," he said.