Economy, Business And Markets

Return to Pre-Sanctions Era Takes Time

Return to Pre-Sanctions Era Takes TimeReturn to Pre-Sanctions Era Takes Time

A return to pre-sanctions era, when Iranian banks were well connected with international banks, will take at least four to seven months, said a managing director of a privately-owned bank in Tehran.

During past few years banks have been under external, and domestic, pressure due to a nuclear dispute between Iran and the West over Tehran’s nuclear energy program. Sanctions barred Iranian banks from SWIFT and therefore pushed them to get involved in speculative activities to make more profit in the absence of international activities.

The lifting of sanctions will not immediately help the Iranian banking sector out, Seyed Kamal Seyedali, the CEO of Iran Zamin Bank said.

Banks are widely criticized for ignoring rising demand for loans. Seyedali urged bankers to give priority to the private sector, which need loans to shore up their cash flow problems.

With sanctions seeming to be removed in a few months, banks are expected to sign contracts with very low fees and replenish their financial resources through global funds, he said.