Euro's and Arabs

pms laflame at aaahawk.com
Mon May 27 11:52:35 PDT 2002


Gulf council, EU to meet STAFF WRITER

The Gulf Cooperation Council (GCC) and the EU are to meet in Riyadh today for talks aimed at finalizing a long delayed free-trade agreement between the two blocs, the Saudi Press Agency said yesterday. The two-day meeting was expected to focus on a review of "technical details of the clauses" of the plan on "goods and intellectual property," SPA said. The meeting, at the level of experts, follows the decision by the EU and GCC in February to step up efforts to create a free trade zone linking the two groups. "GCC countries want to close negotiations and sign a free-trade accord with the EU as quickly as possible," GCC secretary general Abdul Rahman al-Attiya said in a statement. The 15-state EU has insisted that the GCC must have its own customs union before it signs a free-trade agreement with the petromonarchies, in a campaign that has already lasted more than a decade.

http://www.taipeitimes.com/news/2002/05/27/story/0000137874

Low GraphicsMonday, 27 May, 2002, 09:20 GMT 10:20 UK

European banks support Iran

Anti-US feelings are running high in Iran

Two European banks have signed up to help Iran tap the international

capital markets.

The decision to help Iran flies in the face of the US view that the Middle

Eastern state is the most active state sponsor of terrorism and a member

of the "axis of evil".

Iran is set to announce on Monday that it is pressing ahead with its first

eurobond issue since the 1979 Islamic revolution.

Germany's Commerzbank and France's BNP Paribas will handle the issue.

The appointment of the two high profile banks would mark the end of Iran's

struggle to rejoin global capital markets.

A spokesman from Commerzbank confirmed the German bank's role, but did not

have any other details about the size or timeframe of the issue.

Interest payment concerns

Mohammed-Jafar Mojarrad, vice-governor of the central bank told the

Financial Times newspaper that he was confident the bond issue would be

well received.

An official at the bank has suggested that Iran could raise up to 500m

euros ($460m; £316m) from the offer.

The eurobond issue has been subject to fierce internal debate, with

critics arguing that payment of interest on the loan conflicts with

Islamic principles.

The issue is expected to go ahead in the next few months, and could be

followed by others by state-owned industries such as oil and

petrochemicals.

It is not known whether the European banks will try and sell the bonds to

US investors.

Commerzbank had no comment on the political implications of its

involvement with Iran. WATCH/LISTEN

ON THIS STORY

Guy Dinmore, from the FT in Tehran

"The governor of the central bank... has been pressing for this

issue for several years"



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