UK agrees to repay £400mn debt to Iran: Envoy to London

According to Press TV, Hamid Ba’eidinejad said in an interview with Iranian newspaper E’temad “The legal process of this long-running case, which has been going on for more than 50 years, is nearing its end.”

 “The court has ordered the British government to pay the Iranian debt plus interest, and this cannot be changed. At the same time, the opposing lawyers have tried to use every legal opportunity to delay the practical execution of the court’s decision,” Ba’eidinejad added.

Britain says it is unable to transfer the money to the Iranian ministry of defense, to which the sum is owed, as it is subject to EU sanctions and that the US sanctions make it difficult to make a payment to Iran’s Central Bank.

According to the Guardian newspaper, the possibility of the debt being paid off through medicines and humanitarian goods is being discussed.

“It is natural to come up with ideas for the type of payment as the time comes to pay off the debt, given the complexities and banking problems,” the Iranian envoy said. 

“The Islamic Republic of Iran also has ideas for expediting the debt,” he added. 

According to the ambassador, "finalizing the payment method requires a mutual agreement, and talks are underway to determine the details of how the agreements will be implemented”.

The debt is related to an arms deal signed during the 1970s. The money was paid by the former Shah of Iran for 1,750 Chieftain tanks and other vehicles, almost none of which was eventually delivered.