02 Dec Iranian Banks to open branches in Munich
THREE IRANIAN BANKS GERMANY TO OPEN BRANCHES IN MUNICH
After the visit of the Bavarian economy minister Ilse Aigner to Tehran three Iranian Banks Germany are planning to open offices in Munich, Germany!
Germany has been looking to boost exports to Iran since nuclear program-related sanctions were lifted through Iranian Banks Germany. Its now been announced that the Bavarian city of Munich will be location to open up branches of three Iranian banks Germany by the end of the year, to allow financial transfers between German and Iranian businesses. The new Iranian banks branches would help German businesses realize greater exports to Iran.
The current difficulties with no Iranian Banks Germany
Germany was one of Iran’s largest trading partners before international sanctions were imposed on Iran. Its estimated that over 30% of Iran industrial infrastructure is imported from Germany. Never the less the lack of financing has upset the potential for major trade deals between Iran and Germany. As well as the rest of the world.
Recent events in relation to the #Irandeal
Turning point should be the announcement that three major Iranian banks Germany are to open branches in Bavaria state Munich. This is followed by a visit of local economy minister Ilse Aigner to Tehran. Iran’s central bank said, the newest developments could help boost German exports to the Islamic Republic. Middle East Bank, Parsian Bank and Sina Bank have received approval from Iran’s central bank to set up branches overseas. The minister Ilse Aigner, told the newspaper.
Ilse Aigner, Bavaria’s economy minister, told the “Münchner Merkur” newspaper on Sunday that: “Business ties between Bavarian companies and Iran often fail today because of barriers in the payment process. That is why having branches of Iranian banks in Munich is particularly important for our businesses. Especially our small- to medium-sized firms have enormous export prospects to Iran that they will be able to utilise more easily in the future.”
Economic prosperity for the German exporters
Signer cited strong interest in exporting items to Iran from the German engineering, automotive and aerospace. Also from the environmental technology, pharmaceutical and medical technology sectors. So far only a few small European banks without ties to the US have been willing to work with Iran. Meaning that major trade deals have been stalled. “Business ties between Bavarian companies and Iran often fail today because of barriers in the payment process,” said Aigner, who is on her second trip to Iran this year to boost trade ties. Businesses face difficulty in transferring money between Germany and Iran. Many European companies complain that although U.S. sanctions against Iran over its nuclear program were lifted in January, they still cannot secure financing from Western banks. They are worried about further sanctions still in effect in the United States. Such as those against money laundering.
Statement from Iran regarding Iranian Banks Germany
Iran’s Central Bank released a statement early this year about boosting its economic ties with Germany. The bank’s Akbar Komijani commented: “EU companies endured damages in dealings with Iranian banks Germany because of sanctions and banking ties. These are the pre-requisite for trade and economic relations between the two countries.”
Iran is also in talks with the German central bank and other banks to settle oil exports in euros instead of dollars.
The Iranian banks Germany which are involved in opening offices in Munich
Middle East Bank (MEB) who open its doors in 2012 operates primarily as a wholesale bank. Focusing mainly on corporate clients and specialised credit products. Parviz Aghili-Kermani is Managing Director. He told AFP: “This is a first since the revolution of 1979. We hope to open our branch by the end of 2016.”
Parsian Bank opened four branches in Tehran 2012. Its activities include all banking operations, commercial activities and services. Its vision is to enjoy the largest domestic market share and to be the best bank in providing advanced banking services.
Sina Bank started in 1985, when it was known as Bonyad Financial and Credit Institute. It now has over 260 branches in different parts of the country. Its operations include funding various production, business and service units as well as granting credit facilities to various economic sectors. It became Sina Bank in 2009 and has seen significant growth since then. Mohammad Reza Pishrow is Managing Director