Page 32 - IRANRptNov18

8.1.7 Bank news
Italy’s Banca Popolare di Sondrio halts business with Iran
Iran’s Saman Bank to open Frankfurt branch
City of London-based Persian International Bank has credit line with Iranian export bank expanded by €26mn
Italy’s Banca Popolare di Sondrio has “temporarily halted” working with Iranian institutions, according to a press release it released on October 28. The bank, one of the last remaining EU banking institutions dealing with Iranian trade, cited the worsening conditions in relation to dealing with Iran caused by the upcoming second phase of reimposed US sanctions, set to take effect on November 5.
“The reintroduction of sanctions suspended in January 2016 and the possible introduction of further restrictions in dealing with Iran have led in recent months to a progressive and sharp deterioration of the political and economic situation of the country,” Banca Popolare di Sondrio said in the press release.
It added: “The increased risk related to operations with Iran today can no longer [allow for the maintaining of] the operating modes which Banca Popolare di Sondrio has put in place.”
Privately-owned Iranian lender Saman Bank has announced that it is to open a representative branch in the German financial capital of Frankfurt within the next two months, Persian-language daily Donya-e-Eqtesad reported on October 25.
The popular bank said earlier last year that it was looking to expand abroad. Saman’s operations, however, suffered a setback last week when the bank was hit by sanctions. Previously, it was one of the few Iranian lenders that had not been impacted by specific sanctions levied by Washington in the US bid to cripple Iran’s economy.
According to the bank’s chairman, Seyed Ahmad Taheri, the branch will operate within European Union rules, employing Germans for senior roles including for the positions of president and vice president.
Taheri reportedly said the branch would come under the supervision of the German Banking Supervision Authority and would carry out all banking and currency operations.
In other comments, the banking boss said Saman Bank has opened in Rome via a representative office.
He emphasised that no banking and monetary activities would be conducted in the office, saying it had only been established to facilitate the relations between Saman Bank and its customers and Italian banks.
Taheri expressed the hope that Saman Bank could function to a reasonable extent under the sanctions.
Persia International Bank (PIB), a commercial bank based in the City of London, has signed a re-financing agreement with the Export Development Bank of Iran (EDBI), increasing its open credit line to €30mn from €4mn, Islamic Republic News Agency reported on October 23.
PIB was launched in 2002 following the merger of the London branches of Iran’s Bank Mellat and Bank Tejarat. Its commercial operations have been significantly hampered by successive European and US sanctions over the past decade.
The EDBI reportedly said the announcement of the credit line expansion runs in tandem with its opening of a channel for Iranian businesses that wish to use PIB for transactions with European entities.
In a phone interview with bne IntelliNews , a PIB representative said the lender was continuing to experience trouble working with British banks, who, despite the fact that there are no active sanctions aimed at Iran by the UK government,
32 IRAN Country Report November 2018 www.intellinews.com