Iran payment solution in a month: Commerce secretary

Refiners have tapped Saudi Arabia, Kuwait and Iraq to cover for any supply disruption from Iran, which accounts for 12% of the nation’s oil supplies

Kolkata: Commerce secretary Rahul Khullar on Thursday said a long-term solution to the issue of oil payments to Iran will be in place in a month, reports PTI.

“I am confident that payment crisis will be resolved in a month’s time,” Mr Khullar said here on the sidelines of the Indian Tea Association AGM.

Indian refiners are now paying for crude oil bought from Iran through a Turkish bank, after the Reserve Bank of India (RBI) snapped a long-standing route used to pay for imports from the Persian Gulf nation.

When asked about the Turkey route, Mr Khullar said it is a ‘short-term’ solution.

Iran, which has been selling crude oil on credit since late December, when the RBI halted the use of a clearing mechanism under US pressure, had on 27 June written about stopping supplies from August if the dues are not paid.

Refiners have tapped Saudi Arabia, Kuwait and Iraq to cover for any supply disruption from Iran, which accounts for 12% of the nation’s oil supplies.

Mr Khullar said payment in rupee was one of the options which was being looked into.

Meanwhile, due to the payment related issues with Iran, tea price, especially orthodox was subdued by Rs10 a kg this year compared to the previous year.

“Between January to August tea export to Iran was down four million kg compared to previous year,” Indian Tea Association secretary general Manojit Dasgupta said.

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Rupee slide: FM says RBI to intervene, if required

In the midst of risk aversion by global investors in the emerging stock markets, rupee has lost value sharply against the US currency. Crossing Rs49, the Indian currency is moving fast towards the Rs50-to-a-dollar mark

New York: As the Indian currency moved closer towards the Rs50-to-a-dollar mark, finance minister Pranab Mukherjee on Thursday said the Reserve Bank of India (RBI) will intervene in the foreign exchange market “as and when the situation warrants”, reports PTI.

However, “Right now, there is no such situation,” he told reporters here, after meeting leading Indian industrialists at an investment forum.

“The RBI governor has made it quite clear that as and when the situation warrants, the RBI will intervene. Right now, there is no such situation,” Mr Mukherjee said.

In the midst of risk aversion by global investors in the emerging stock markets, rupee has lost value sharply against the US currency. Crossing Rs49, the Indian currency is moving fast towards the Rs50-to-a-dollar mark.

While a weak rupee helps exporters, it poses a serious problem for a country which meets over 75% of its crude oil requirement through imports. The landed cost of imports becomes expensive, as the local currency loses value against the US dollar.

Mr Mukherjee pointed out that the international environment is an “area of concern”, particularly the high ratio of sovereign debt to the gross domestic products (GDPs) of euro zone nations and the slow pace of recovery in industrialised countries.

Inflationary pressure and forex volatility in emerging markets is posing serious concerns, he added.

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COMMENTS

Sekar

5 years ago

Rupees goes beyond 60 for sure as the economy around globe is heading nose dive. Congres govt. doesn't have enough time to loot India, why would they care inflation and rupees value?

SBI doubles MTN programme size to $10 billion

The MTN programme has been upsized from $5 billion to $10 billion. SBI has also extended its 25 basis point concessional home loan scheme till December

Mumbai: State Bank of India (SBI) on Thursday said it has doubled its Medium Term Note (MTN) programme to $10 billion to fund overseas business, reports PTI.

The MTN programme has been upsized from $5 billion to $10 billion, SBI informed the BSE.

The offering circular (OC) under the said MTN programme has been updated on 19th September 2011, with the audited financial data of the bank as on 31 March 2011, and filed with the Singapore Exchange, it said.

Meanwhile, SBI extended its 25 basis point (bps) concessional home loan scheme till December.

Under the scheme, SBI offers a 25 bps discount on interest rates on its card rate across the tenor of a floating home loan.

The scheme which was open till 31 October 2011 has now been extended till 31 December 2011.

Under the scheme, a borrower will now be charged an interest of 10.50% as against the earlier 10.75% on loans up to Rs30 lakh. Similarly, a loan above Rs30 lakh, but up to Rs75 lakh, will attract an interest of 10.75%, as per the new scheme.

In order to attract home loan customers, rivals like ICICI Bank, HDFC and LIC Housing Finance have recently launched dual interest rate products offering a fixed rate of interest to start with, which will be later aligned to the base rate as the loan progresses.

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