News / Middle East

Sanctions Hurting Iran's Access to Capital: US Report

Reuters
Western sanctions targeting Iran's nuclear program contributed to a steep drop in Tehran's access to global sources of capital last year, the U.S. Treasury Department said in a report to Congress.
       
Foreign banks cut their lending exposure to Iran by the equivalent of $9.1 billion in 2012, down 53 percent, said the report, a copy of which was obtained by Reuters on Thursday.
       
Iran's isolation from foreign lending "means that much needed investment to support its continued economic development is scarce,'' said the report, which Congress required in the U.S. sanctions law.
       
Broader international sanctions against Iran and other perceived weaknesses in the investment climate in Iran also contributed to the drop, the report said. It cited lending data from the Bank of International Settlements, which promotes collaboration among central banks.
       
The United States and the EU have imposed sanctions on Iran that aim to choke funding to Tehran's nuclear program. The West says the program is developing nuclear weapons, a charge Tehran denies.
       
Iran's gross domestic product is falling "possibly by the largest margin in 25 years,'' the report added.
       
It did not elaborate. But the Washington based Institute for International Finance said late last year Iran's 2012 GDP was expected to shrink by 3.5 percent, from 1.2 percent positive growth in 2011, as sanctions helped slash the country's oil exports by 1 million barrels per day.
       
In Washington's latest effort to tighten sanctions, the Treasury said on Wednesday Iran's oil earnings would now be shackled in special accounts in countries that buy oil from the Islamic Republic. Tehran can only use the funds to buy goods from its oil customers, preventing the money from being repatriated and used on the nuclear program.
       
The new measures represent a "significant turning of the screw,'' a senior U.S. official said.
       
Still, many experts say sanctions alone are unlikely to stop Iran's nuclear program as the country has a large foreign currency reserve built up from years of high oil prices.
       
Last month Iran announced plans to install and operate advanced uranium enrichment machines.
       
Iranian crude exports in December rose to their highest level since EU sanctions took effect last July, analysts and shipping sources said last month, as strong Chinese demand and an expansion of its tanker fleet helped Tehran dodge the sanctions.

You May Like

Sydney Hostage-taker Failed to Manipulate Social Media

Gunman forced captives to use personal Facebook, YouTube accounts to issue his demands; online community helped flag messages, urged others not to share them More

UN Seeks $8.4 Billion to Help War-Hit Syrians

Effort aimed at helping Syrians displaced within their own country and those who've fled to neighboring ones More

Who Are the Pakistani Taliban?

It's an umbrella group of militant organizations whose objective is enforcement of Sharia in Pakistan 'whether through peace or war' More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid