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Iran Says Indian Refineries Pay Off $5 Billion In Oil Debts

Central Bank Governor Mahmud Bahmani

Central Bank Governor Mahmud Bahmani

Iran's Central Bank Governor Mahmud Bahmani says India has paid off all oil debts accumulated this year due to a sanctions-related problem that has held up billions of dollars of oil income.

Bahmani told the IRNA news agency that four oil refiners in India have paid off all of $5 billion in payments that have accumulated since the Reserve Bank of India scrapped a clearing-house system in December 2010.

Bahmani said the payments were received in cash.

Indian officials say the firms made the payments in euros using the Turkish state-owned Halkbank.

India is Iran's second-largest oil buyer after China.

Mohsen Qamsari, the head of international affairs at the National Iranian Oil Company, said there were no plans to cut oil exports to the Indian refiners and that exports to India are continuing in September.