World  Business and Economic Analysis 

Seif,

  • Welcoming Foreign Banks to Iran

     

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    Conditions are right for establishment of international  bank branches and correspondent offices in Iran, governor of the Central Bank of Iran Valiollah Seif.


    “Foreign banks are welcome to establish branches and correspondent offices in the country,” Seif said, adding that according to the regulations foreigners can own up to 40% of banks’ shares in the mainland.
    “Iranian banks had been excluded from the global network in the past few years and improving banking standards is a time-consuming process,” ISNA quoted him as saying during a meeting with Iranian ambassadors and diplomats.  
    Seif said the CBI is investing considerable time and effort in reviving relations with foreign banks in the post-sanctions era, adding that “banks are starting cooperation with Iran in fits and starts.”
    The United States and Europe lifted sanctions in January under a deal with Iran to limit its nuclear program, but other US sanctions remain, including a ban on all Iran-linked transactions in dollars processed through the US financial system.
    European banks, some of which were punished in the past for breaking the US sanctions imposed on Iran, remain skeptical in restoring trade ties and have largely held back despite the lifting of some restrictions in January.
    US Secretary of State John Kerry met Thursday with major European bankers to clarify rules for doing business with Iran. But the bankers said after the meeting that they assurances given by the senior US diplomat are vague and that they were not convinced by his statements on the easing of sanctions.

  • Iran secures €8b loan from Korea Eximbank

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    World Business Year International project Finance and Investment consulting reported that ,Iran has secured an €8-billion credit line from South Korea's Eximbank, the Islamic republic's biggest loan deal since its 2015 nuclear accord, the Iranian central bank announced Thursday.


    "The biggest contract since the atomic accord was signed with South Korea's Eximbank today for the amount of €8 billion (RM40.39 billion)," said central bank governor Valiollah Seif, in a statement carried by state news agency Irna.
    A spokesman for South Korea's export credit bank, contacted by AFP, said the deal would finance projects in Iran by companies from the Asian country.
    "We started signing with Iranian banks a framework agreement today. We did it with three Iranian banks today and will do so with nine other Iran banks in the coming week to complete the agreement," he said.


    "Under the agreement, Eximbank will provide an €8-billion credit line for those banks so that they can help finance various projects in Iran that are awarded to South Korean companies," said the bank spokesman.
    Seif said the loan would facilitate "several development and production projects", and it showed the international community was ready to restore "long-term" banking ties with Iran.


    Under the landmark July 2015 nuclear accord signed by Iran and world powers, Tehran has curbed its atomic programme in exchange for an easing of international sanctions from January 2016.


    But Washington has maintained and increased unilateral sanctions over Iran's ballistic missiles programme and alleged support for terrorist groups, deterring a full return to the Iranian market by some international players cautious over possible US punitive measures.
    "One of the problems created by international sanctions was they put a halt to financial accords," said the central bank chief.
    US President Donald Trump, who took office in January, is a fierce critic of the nuclear deal, acting as a deterrent to a normalisation between the Iranian banking sector and major international banks.


    But with the Eximbank agreement sealed, "I hope we will be able to announce more good news in the days and months ahead," said Seif.
    Iran's President Hassan Rouhani says the country, a major oil producer, needs massive foreign investment to revive its economy and combat its high unemployment, officially estimated at 12.7%.

کتاب عملیات بانکی در عرصه بین الملل -سرفصل ها،ضمائم ،توصیه صاحب‏نظران ارزی و مدیران ارشد بانکی

Investment Consulting &Project Finance

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