Opening the first branch of European Bank in Iran

For the first time after revolution, through endeavors of Bank of Industry and Mine and assistance of the respective Executive Organizations, the first branch of Iran and Europe Trading Bank was opened in Tehran on Wednesday 28/5/2008.
Iran and Europe Trading Bank is a European bank which operates under the laws and regulations of European banking and supervision. Inaugurating its first branch in Iran, the operations on issuing Letter of Credits, foreign exchange Bonds, Import and Export Affairs are easily possible.
Exploiting the bank new implements in international arena, this bank provides the finance of internal projects and is ready to present every expertism and consultative services for the Iranian and European traders and investors by assistance of investing experts.
Opening different kinds of accounts, issuing the check papers, making the bank agency relationships with other banks including internal and international expenditures, decreasing of Iranian long-term letter of credits are amongst other activities of Iran and Europe Trading Bank.
Currency exchanging, issuing the credit cards, admitting the facilities for purchasing the stock goods and liquidity management of financial resources are also amongst other activities of this bank.
During the inauguration ceremony of this bank, referring the circumstances of the relationship between internal and foreign Banks in the recent years, Dr. Mazaheri, General President of Central bank of Islamic Republic of Iran, stated: For the time being, the terms and conditions are obtained for the presence of foreign banks in the country and they can be active in the economical arena of our country by establishing the branches or independent bank and/or by participating with Iranian banks.
He added: There are a lot of investing opportunities for profitable productions and the foreign banks can minister and be effective to the production and preoccupation of the country by presenting the facilities and providing liquidity for the industries.
He continued: Today we face with a problem of liquidity. From one side, the liquidity and its growth are much in the economy, and on the other side, the manufacturing sections in the country feel the liquidity shortage. That liquidity resulted from the economical activities of our financial organizations is the source of the economical growth and development. This liquidity will be at the disposal of the manufacturing sections easily and can be used in the economy of the country, but the liquidity which resulted from the money transfusion and increase of the money base and transfused to the economy by central bank, caused the inflation and disarranges the economical equilibrium, and naturally is not leaded to manufacturing sections. Hence the amount of money transfusion was decreased in order to prevent its negative effects in the society and some polices adopted in order to develop the financial organizations to provide safe liquidity for manufacturing sections and is or will be performed in lapse of the time. The activities related to the development of financial organizations, one the recovery of the capital structure and financial texture of the state banks, and the other the development of activities of the private banks were for both geographical development and capital increase and the diversification of financial implements, and this process will be continued.
Concerning the arrangement of the Financial and Credit Institutions he said: The next action of the central bank is to arrange and order the monetary institutions activated out of central bank's supervision. Some effective and serious actions should be taken for making financial order and using the capacities of these institutions within the last months.
Concerning the presence of foreign banks Dr. Mazaheri said: Last action of the central bank was to issue the authorization and to invite the foreign banks to Iran through setting up the branches or a new bank, entering into partnership with Iranian partners or by themselves. Opening of this branch is its starting point.
He added: Observing the monetary and bank regulations of the country and bringing the resources on behalf of their shareholders, these banks can activate in Iran.
Branches of foreign banks in Iran will activate on the basis of Iran Bank regulations and of course observing their sister bank's standards and principles and will present the facilities, bank services and collect the resources accordingly.
General President of the Central Bank said: Legal problems of this performance were eliminated within the past months and thereafter some foreign banks got the establishment authorization upon their request and while getting ready to activate, they will start exploiting.
Dr. Mazaheri added: This bank's activity brings about both the acceptable profit for the bank and provide the liquidity and credit required for the activities and economical sections of the country. The presence of the foreign banks and using the banking technical knowledge on behalf of these banks provide the development and promotion of the competition between private, state and foreign Banks and cause the quality improvement of the bank services for the people.
Iran and Europe Bank will play an effective role in financial providing of Iran transactions with European countries, Far East, Australia and other parts of the world.
Opening the first branch of Iran-Europe Trading Bank in Iran, besides it accelerates to attract the foreign investment, will lead the country bank system with international bank system to get competitive together, considering presenting its cheap and diversified facilities.
Iran-Europe Trading Bank which Bank of Industry and Mine is its main shareholders leaded more than 6 billion Euro Letter of Credit in the past year, considering its high volume of bank operations, the profit was increased by 2 times in 2007 in comparison with the same duration in the year before. Regarding its operational success, it could reach the 86th rank amongst more than 2000 monetary institutions in Germany.