Page 33 - IRANRptAug18

EU tells EIB it can lend in Iran but bank’s head says move would risk global operations
Iran’s Bank Pasargad to open branch in India following clearance by New Delhi
Swiss bank, Indian lenders, German DZ Bank, Austria’s Oberbank drop out after US nuclear deal exit
need to develop strategies for realising trade talks between the two countries," he added.
Soltani said: "Some European banks, especially small banks that have less financial dealings with the United States, are waiting for the European Union's decision to resume the provision of services to Iranian banks, with the necessary support from the Union."
Chairman of the Vienna Chamber of Economics Walter Ruck was quoted in the press release as saying: "Following negotiations with the Austrian bank, they announced that they were willing to ensure the settlement of 80% of the volume of trade between Iran and Austria.”
He added that another 20% would be guaranteed through an Austrian finance company. “Austrian banks have already had doubts about their relationship with Iran because of the sanctions, but now they are willing to re-establish the connection," Ruck said.
Last week, the European Union agreed to add Iran to the list of countries that its lending arm, the Luxembourg-based European Investment Bank (EIB), is permitted to do business with —but the development bank’s president, Werner Hoyer, responded that its global operations would be put at risk if it were to invest in the Islamic Republic.
Hoyer was quite entitled to take that line—the EU executive has made it clear that the addition of Iran to the list, to take effect from August, in no way forces the EIB to begin lending—but it added to the scepticism in Iran as to whether the major European powers are going to deliver enough viable economic measures to maintain the multilateral nuclear accord as a pact worth staying in for Tehran, following the unilateral withdrawal from the agreement by the US in May.
Iran’s privately-owned and operated Bank Pasargad has been given the green light by Indian financial authorities to open a branch in India, Financial Express reported on July 14. The Federation of Indian Export Organizations had earlier approached the Reserve Bank of India suggesting that it should allow the entry of Iranian banks into India to facilitate bilateral trade. With the presence of the Iranian bank in India it will now facilitate oil trade transfers back to Iran and ultimately the Iranian Petroleum Ministry, which is in charge of receiving payments.
The bank’s CEO, Mostafa Beheshti-Roy, said in March that the bank was considering the establishment of three additional branches in India, following the earlier announcement of a central branch in Mumbai. Also, three new branches are expected to open in Delhi, Hyderabad and Ahmedabad. Beheshti-Roy added the banking group was also looking at setting up several branches in other places abroad, including in Spain, Russia, South Africa, Italy and Switzerland.
Swiss lender Banque de Commerce et de Placements (BCP) and India’s IndusInd and UCO l ast month said they were winding down Iran-related activities in the wake of Washington’s exit from the multilateral Iran nuclear deal , with heavy sanctions to be extended to foreign traders and investors who remain in business with the Islamic Republic.
The Federation of Indian Exporters Organisation (FIEO) told Reuters that the IndusInd and UCO banks, which facilitate trade with Iran, have informed Indian
33 IRAN Country Report August 2018 www.intellinews.com