State-run lender gives up India-Iran debt mediation

ISTANBUL - Reuters

Turkey’s Halkbank has refused to open an account for BPCL, sources claim. DAILY NEWS photo, Hasan ALTINIŞIK

Halkbank has refused to open an account for Indian oil company Bharat Petroleum (BPCL) because the company wants to use the account to make oil payments to Iran.

Since last year, India has been looking for a way to make payments to Iran, India’s second largest oil supplier.

The Central Bank of India froze the system responsible for processing trade-related payments between India and Iran, pleasing the United States.

India had been using Halkbank to pay Iran, but U.S. pressure on Turkey led to the bank halting those transactions as well.