Economy, Business And Markets

Bank Austria Links Up With Iranian Lender

Bank Austria Links Up With Iranian Lender Bank Austria Links Up With Iranian Lender

Bank Austria has signed a cooperation agreement with an Iranian bank while launching its business with the Islamic Republic , said Naser Riahi, a member of Tehran Chamber of Commerce, Industry and Mining board of representatives. He did not disclose the name of the Iranian lender.  

“Other Austrian banks are also keen on boosting ties with Iran, including Erste Bank, which has been holding talks with the Central Bank of Iran over issuing letters of credit,” YJC quoted him as saying during TCCIM’s meeting on Tuesday. Erste bank has opened accounts with several Iranian lenders including the privately-owned Middle East Bank.

Bank Austria is one of the biggest banks in the European nation with market shares ranging from 15-50 %. It is the number one banking partner for Austrian companies. Since November 2005, Bank Austria has been a member of UniCredit Group, one of the leading European banking groups.

Erste Group Bank –Austria's largest lender-was established in 1819 as the first Austrian savings bank and today is one of the largest financial institutions in Central and Eastern Europe with over 16 million customers and 2,700 branches in the country of 8.5 million people.

“The bank is planning to offer one-year LCs at 1.5%-3%,” he added.

OeKB (Oesterreichische Kontrollbank Aktiengesellschaft) is the other Austrian bank trying to enter Iran's market according to the official. “The bank is set to guarantee 95% of Austria’s exports to Iran.”

OeKB is a financial services provider in the Austrian banking industry. It is owned by domestic commercial banks, is Austria‘s official Export Credit Agency. It was founded on in January 1946 to provide specialized banking services.

Raiffeisen Bank is more interested in Iran's stock market according to Riahi. “It has invested $2 billion in Iran.”

“Raiffeisen Bank has applied for opening a representative office in Tehran,” he said adding that the bank is also ready to help Iranians invest in the bourse in Istanbul.