Brazil Invites Iranian Banks to Open Branches

Iranian banks will be able to open branches in Brazil after following due process like banks of any other nation, as the Latin American country welcomes expansion of trade ties with the Middle East country, Brazil's ambassador in Tehran said.

"In order to help promote trade, foreign banks including those of Iran are able to act in line with establishing a branch and engaging in banking activities in Brazil without any restrictions," Rodrigo de Azeredo Santos also reportedly told IRNA.

Santos referred to the Iranian delegation with the Central Bank of Iran that traveled to Brazil a while ago and said the visit was followed by negotiations to "remove Iranian banking limitations".

The ambassador said conditions on correspondent banking relations were facilitated for a Brazilian bank to work with Ira," without naming the bank.

As Santos outlined, it takes 12 to 18 months for any foreign bank to be fully evaluated and obtain the permits for opening a branch in Brazil.

He noted that banking operations play one of the most important roles in any trade and transaction, adding that the same problems faced by major European banks in working with their Iranian counterparts are also encountered by Brazilian banks.

The still-high risk rating of Iran by the Organization for Economic Cooperation and Development, the fear of sanctions snapback and the uncertainty created by the hostile rhetoric of US President Donald Trump have all contributed to major European banks' qualms about working with Iran.  

"[However] we welcome the presence of Iranian banks in Brazil and their opening of branches here because such a measure by both governments can help develop trade ties between the two countries," Santos said.

Last week, deputy oil minister for international and trade affairs, Amirhossein Zamani, had announced that a delegation consisting of officials with the Central Bank of Iran and a number of private banks will travel to Brazil within the next few months for creating the grounds for expanding banking relations.

Also last week, a business gathering was held at the Iran Chamber of Commerce, Industries, Mines and Agriculture, which was attended by Brazilian Executive Secretary of the Ministry of Agriculture, Livestock and Supply Eumar Roberto Novacki, with Santos in attendance.

During the meeting, both sides underlined the necessity of improving banking relations to boost bilateral trade and investments.