Economy, Business And Markets

Meeting With German Banks Set for April

Meeting With German Banks Set for April    Meeting With German Banks Set for April

Iranian and German banks will hold a meeting in April to discuss issues related to enhancing relations and improving the performance of Iranian lenders. The planned meeting was announced during a visit to the central bank late Saturday by a German economic delegation.

The two sides are set to prepare a draft agreement over settlement of Iran’s Hermes Cover debts, which would be signed by the economy ministers of Iran and Germany during the meeting the date for which has yet to be announced, the CBI public relations office reported.

Berlin has demanded that Iran clear its €500 million ($560 million) debt before it resumes providing guarantees for German exports to the Islamic Republic.

Matthias Machnig, German state secretary for the federal ministry for economic affairs and energy, pointed to European Union and Germany’s interest in reestablishing bilateral relations with Iran and said, “Germany’s economy is waiting to see the positive impact of the lifting of sanctions against Iran.”

“However, banking relations are instrumental in boosting commercial relations, and without banks’ finance no progress would be possible,” he said, calling for development of a legal framework for financial operations.

Valiollah Seif, the CBI governor, also called for resolving ambiguities in banking and commercial relations. “By doing so, Iran could prepare the ground for German banks to get a clear understanding on investment risks in Iran.”

“We also need to know the exact concerns of German banks to be able to address them,” he added.

The CBI has been trying to promote corporate sovereignty principles as well as Basel II and Basel III standards in the banking system, according to the Seif. “We have also been holding talks with Germany’s BaFin (Federal Financial Supervisory Authority), to benefit from their experiences for improving Iran’s banking system.”