Tags: iran | 100B | post-sanctions | windfall | spending | spree

Iran's $100B Post-Sanctions Windfall Sparks Spending Spree

Image: Iran's $100B Post-Sanctions Windfall Sparks Spending Spree

Iran's President Hassan Rouhani speaks at a joint news conference at the Elysee Palace in Paris. (REUTERS/Charles Platiau)

By    |   Monday, 01 Feb 2016 08:42 AM

Iran said it now has access to more than $100 billion worth of frozen overseas assets following the implementation of the nuclear deal with world powers, and the windfall has sparked a spending spree by President Hassan Rouhani.

Government spokesman Mohammad Bagher Nobakht said much of the money had been piling up in banks in China, India, Japan, South Korea and Turkey since international sanctions were tightened in 2012 over Tehran's nuclear program, reported The Associated Press. His comments were posted on the website of state-run Press TV on Monday.

The landmark agreement brought about the lifting of international sanctions last month after the U.N. verified that Iran had curbed its nuclear activities.

Iran's semi-official ISNA news agency meanwhile quoted Central Bank official Nasser Hakimi as saying nine Iranian banks are now reconnected to SWIFT, a Belgian-based cooperative that handles wire transfers between financial institutions.

On Thursday, Iran purchased 118 Airbus planes as part of a $16 billion spending spree in France. The package includes an order for 12 A380 superjumbos.

The Airbus deal was signed by Rouhani in a ceremony at the Elysee Palace just days after he visited Italy to buy goods and services for post-sanctions Iran.

Another French deal stuck an agreement with automaker PSA Peugeot Citroen, which will help modernize a car plant in Tehran.

"Among other deals announced in the French capital, Aeroports de Paris and Bouygues will assist in the construction of a new terminal at Tehran’s main Imam Khomeiny hub and Vinci signed an outline agreement to run and renovate airports at Mashhad and Ispahan," the Seattle Times reported.

CNN Money reported that Rouhani announced that Iran is looking for investment in "energy, oil, gas, agriculture, modern technology, automobile industry, mining, telecommunications, modernization of air fleet and railways, and tourism cooperation."

According to Reuters, some companies, such as Boeing, have held back from striking large deals with Iran for political and legal reasons.

"The Airbus deal depends on unraveling a knot of financial issues including whether and how Iran can avoid using the U.S. financial system for the jets, usually priced in dollars," wrote Reuters.

The purchase comes as British Airways confirmed it may resume flights to Tehran. Air France and KLM are expected to follow suit.

Related Stories:



© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
TheWire
Iran said it now has access to more than $100 billion worth of frozen overseas assets following the implementation of the nuclear deal with world powers, and the windfall has sparked a spending spree by President Hassan Rouhani.
iran, 100B, post-sanctions, windfall, spending, spree
394
2016-42-01
Monday, 01 Feb 2016 08:42 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved