World Business and Economic Analysis
World Business and Economic Analysis
Sue Millar of Stephenson Harwood Law firm says British banks are generally very interested to re-establish connections with Iran and claim that there is a real movement happening in this area.
In an interview with IRNA in London, and commenting on her opinion about the current banking situation, Millar said, 'We act for the British Iranian banks and have been heavily involved in discussions with industries, the regulatory authority and the government about how to break the banking impasse.
The good news is that there is a real movement and it is well intended, but it is frustratingly slow.'
On the reason why things are moving slow, she said, 'It is a combination of the architecture of the banking system in the UK which is different to the architecture to the banking system in Europe.
Each bank has a direct clearing relationship in Europe, but here in the UK you clear through another bank and those are the banks tend to be large banks who have found themselves on the wrong side of very large penalties from the US.
So they are naturally far more cautious than as warranted.'
Q. To a question if there is a prospect of normalization of banking system between Britain and Iran, the British expert said,' I think there is and it will happen. I am a long term optimist. I have said this and would say just wait another six months.
The banking industry in the UK are generally always very interested in Iran, but they want to be second or third in. They like to see what the other banks do first.
I think there are relatively simple steps that could be put in place to resolve this and I think that there is a political will to do so, but previously the UK government was looking for the commercial sector to fill the gap and now I think there is a grown realization that there might need to be some intervention.'
On the the impact of Brexit on trade with Iran, she said, 'It is a difficult question, but if the reality is that we are not going to have any deals with the EU and we are just going to be a trading partner like anyone else, it certainly is the case that the UK needs to find additional market.
Brexit should act as an accelerator real trade with Iran.'
Asked if Donald Trump retreats from JCPOA, would Britain preserve its position, the British sepert said, 'I think so far as the JCPOA is concerned, the next president is irrelevant to JCPOA. By that, I mean that in order to tear up the JCPOA it has to be on the basis that Iran has breached the fundamentals of its obligation.
What the US or any other signatories cannot do is just to say I am walking away from their international obligation. I do not think that is going to happen. I think the JCPOA will hold and I do think that the next president is irrelevant to the question of the future of the JCPOA.
*Sue Millar is a finance litigation specialist. She focuses on investment banking disputes, involving highly complex products and structures. Her expertise extends to commercial and private banking and trade finance disputes.
Yerevan-based Mellat Bank CJSC, fully owned by Iran’s Bank Mellat, has increased its authorized capital in compliance with the new requirement of the central Bank of Armenia, Mohammad Bigdeli, chairman of Mellat Bank CJSC’s board, told a press conference.
The authorized capital was built up to 32.1 billion drams (about $67 million) in September and its normative capital now amounts to 31 billion drams (about $65 million), ArmBank.am reported.
To enhance effectiveness, firmness and stability of banks the Central Bank of Armenia announced a new requirement for banks – their capital must amount to no less than AMD 30 billion ($63 million) from January 1, 2017 instead of the present AMD 5 billion ($10.5 million).
Iran's Mellat Bank opened a subsidiary in Armenia in 1996 in accordance with the agreement signed with the Central Bank of Armenia. Initially the bank operated as Iranian Mellat Bank’s branch, but in September 1997 it was reorganized into a subsidiary with CJSC status.
Bigdeli said that after the sanctions were lifted the bank decided to open branches in other countries to provide higher quality services to clients and tourists.
New Yerevan Hqs.
Mellat Bank opened its new office in Yerevan last week.
Deputy general manager of Mellat Bank Armenia, Gholamreza Mousavi, speaking at the opening ceremony, said that the office is in downtown Yerevan and expressed the hope that its modern design and comfort would help cater to clients’ needs.
He also expressed the hope that the bank could open more offices in Armenia.
He said that Mellat Bank is offering services to many clients from Iran and other countries, and this shows that tourism and economic activity in Armenia is growing.
Deputy Chairman of Armenia's central bank Vakhtang Abrahamyan, who was also speaking at the inaugural, said Mellat Bank has a high status in Armenia’s banking sector, providing high-quality services in line with mutual cooperation.
“We are happy to say that Mellat Bank meets all the requirements of the central bank, and this is a basis for its long-term activity,” he said.
Iranian ambassador to the Caucasus nation, Kazem Sajad, said that the Iranian side has met with Armenia's Central Bank Chairman Arthur Javadyan, representatives of the finance ministry and the state revenue committee "to develop cooperation in banking and insurance sectors."
He said that the number of Mellat's branches in Armenia is expected to increase and that the bank will strive to further improve its services.
Planning Tbilisi Branch
The bank is reportedly also considering opening a branch in Georgia, Bigdeli was quoted as saying.
The Tbilisi branch will operate under the management of the Yerevan branch.
Bigdeli said that the matter is under preliminary consideration. “If it is decided that opening this branch is viable, we will open it,” he said.
Iran and Japan will promote cooperation in energy optimization in buildings as the two companies of knowledge-based Mahsabad and AZBIL have launched cooperation in the field.
The Japanese company has announced its readiness for cooperation with the Iranian Mahsabad in the field of optimizing energy in buildings.
During the meeting secretary of the Headquarters for Optimizing Energy and Environment of the office, Yadollah Sobbouhi stressed the need for undertaking extensive projects in optimizing energy, saying that optimal use of energy and environmental management are among the priorities of the country, especially in the southern oil-rich areas.
He introduced Mahsabad Energy Company as a knowledge-based company to the Japanese company AZBIL, saying that cooperation in the field of developing energy-related services will pave the way for exchanging knowledge and technology.
AZBIL has been operating in the field since 1906 for producing measurement and control equipment, electricity systems and equipment, safety equipment and optical systems are among the major undertakings of the German company.
