Apr 25, 2010
An arbitration court in The Hague has ordered the British government to refund $650 million to Iran over an outstanding 1970s arms deal.
The British government has confirmed the court’s ruling and that the compensation money for Iran is now sitting in bank accounts waiting to be withdrawn, ABC reported on Sunday.
Between 1971 and 1976, the Shah of Iran had ordered 1,500 state-of-the-art Chieftain battle tanks and 250 military vehicles costing $650 million, The Independent reported.
The deal was canceled after the Islamic Revolution in 1979 and Iran took Britain to court to reclaim the down payment.
The Independent has revealed that Britain is to pay back nearly 400 million pounds to Iran’s Defense Ministry after finally admitting defeat in the dispute.
According to The Independent report, the settlement between International Military Services (IMS) Ltd, the company used by the British Ministry of Defense to strike the tank deal with the Shah in the 1970s, and Iran’s Defense Ministry will be finalized in the coming weeks.
The Iranian finance minister has announced a plan to remove three zeros from the national currency, Rial
, in a move to optimize financial performance.
Iran “will remove three zeros from the national currency this year on the condition that the prerequisites are achieved,” Minister of Economic Affairs and Finance Shamseddin Hosseini told IRNA on Saturday.
Hosseini made a reference to Iran’s financial regulatory policies and oversight of its Central Bank, which were approved earlier within a package and noted, “There are initiatives in the package that project lower expenses, stability and performance improvement in the country’s banking and monetary sectors.”
He added that based on such policies, the country could focus on removing the extra zeros.
The Iranian minister noted that establishing stability in the prices would serve as the first step to achieve the objective.
The decline in the value of Iran’s national currency in recent decades has triggered a number of objective and subjective dilemmas, analysts say.