December 13-2013
The UCO Bank in India is one of the few places that is very unhappy with the interim nuclear agreement signed between Iran and the Big Six. UCO is the bank into which Indian buyers of Iranian oil pay for that oil. Under sanctions, the bank cannot send that money to Iran. So it sits in UCO, where the account has mounted up to $3 billion or an eighth of UCO’s total deposits. That fund allows UCO to make many more loans and has led it to be a much bigger bank than in the past. But under the interim agreement, some part of that will now be allowed to be sent to Iran. UCO executives are presumably praying daily that it won’t be tapped for much.
