News / Middle East

Sanctions Hurting Iran's Access to Capital: US Report

TEXT SIZE - +
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

Algerians Vote in Presidential Election

There were few media reports of protests and clashes around the country, but so far no significant violence More

Sharks More Evolved than Previously Thought

The discovery could “profoundly affect our understanding of evolutionary history” More

Pakistan Military Asked to Protect Polio Workers

Request comes as authorities say a Taliban ban on vaccinations in 2012 and deadly attacks on anti-polio teams have prevented thousands of children from getting inoculated 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.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid