Central Bank of Iran hosted an Algerian delegation Tuesday headed by Bank of Algeria’s governor and the country’s ambassador.
Valiollah Seif, the CBI governor, referred to close political ties between the two countries and called for establishing a joint bank to help enhance banking relations, CBI’s official website reported.
“Cordial banking relations pave the way for improving commercial and economic relations” between nations, he said.
CBI had earlier urged the North African state to address collateral issues encountered by Iranian contractors working in that country.
Seif suggested that a joint account for settlements would facilitate monetary issues and help improve the cumbersome banking procedures. “The CBI will present an initial plan that will come into effect after reviews and modifications by the relevant experts.”
The senior banker added that “Incentivizing banks to set up overseas branches expands banking ties as it helps businesses in getting their banking formalities processed faster, like opening credit lines and making settlements.”
He said Iranian banks are willing open branches in Algeria obviously with CBI would backing Algerian banks are welcome to operate in Iran, he told the visitors.
Seifi proposed the establishment of a regional bank to foster trade relations among neighboring countries.
Receptive
Mohammed Laksaci, the governor of Bank of Algeria, said his country is willing to improve banking relations with Iran.
“Technical issues should be addressed first to be able to develop a mutual understanding of our two banking systems, then experts can share experience,” he said.
He welcomed Seif’s offer to open bank branches in each other’s countries and said, “Commercial banks in Algeria operate under the supervision of the ministry of economy and any cooperation within Algeria’s legal framework would indeed be appreciated.”
Earlier this year Tehran and Algiers had agreed to cooperate in developing transportation projects in Algeria. Iran is an observer at the African Union (AU) and actively participates in the summits.
Algeria offers many investment opportunities especially in agriculture, automotives and pharmacy. Incentives offered by its government have created a window of opportunity for Iranian companies wanting to work in Africa.
Relations between Algeria and Iran have always been cordial with the former having mediated successfully in the US hostage crisis in Iran in 1981 and the Iran-Iraq border dispute in 1975 in a historic agreement that came to be known as the ‘Algiers Accord.’
