Kenneth Rijock

Kenneth Rijock

Sunday, August 26, 2012

DOES NEW IRANIAN NUCLEAR EQUIPMENT RAISE COUNTRY RISK FOR THE REGION ?



Iran has reported that it has produced or manufactured new Uranium Enrichment Centrifuges, and that it is producing its own nuclear reactor fuel plates. Coupled with the failure of last week's international efforts to dialogue with the Government of Iran on its sanctioned nuclear programme, the question arises; does this mean that one must now raise country risk for all the countries in the Persian Gulf, as well as Israel and the United States ?

If the possibility of armed conflict has increased, compliance officers who are responsible for the computation of Country Risk at their financial institution, need to also fully examine their situation: clients with ongoing international trade in the region, your bank's own financial exposure, including debt and repayment schedules, Letter of Credit, branches, correspondent relationships in the region, and the potential for default.



It is suggested that you closely monitor unfolding developments in the Persian Gulf in September, lest you be caught unawares.






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