Monday, March 26, 2007

Major International Banks Cutting Ties with Iran

The Washington Post is reporting today that more than 40 major international banks and financial institutions have either cut off or cut back business with the Iranian government or Iranian corporations as a result of a campaign launched by the US Treasury and State departments.

Robin Wright, the Post staff writer, reports that the financial squeeze has seriously crimped Tehran's ability to finance petroleum industry projects and to pay for imports. Many Iranian importers are now forced to pay for commodities in advance when a year ago they could rely on a revolving line of credit.

Among the major financial institutions that have cut back business ties with Iran are UBS of Switzerland, which cut off all dealings with Iran last year, London-based HSBC and Standard Chartered, as well as Commerzbank of Germany.

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