India refiners brace to settle Iran debt
NEW DELHI, July 1, 2015 – India has asked domestic refiners to buy euros and dollars to make ready for $6.5 billion in debt payments to Iran if sanctions are lifted.
The move is intended to forestall downward pressure on the rupee if negotiations on a nuclear accord between Western countries and Iran succeed.
Indian refiners lost their channel for payments to Iran when Turkey’s Halkbank ceded to US and EU sanctions pressure to end flows of cash to the country in 2013.
India’s oil ministry said in a June 11 letter to five refinery operators that if a deal is reached on its nuclear programme, Iran would likely call in the billions in debts.