Poland Favors Banking Coop. With Iran

Polish and Iranian lenders need host each other’s bank branches to normalize banking ties between the two countries, the Polish deputy minister of economy said.

“That would not only boost the correspondent banking relations, but also provide finance for various projects in infrastructure and other sectors,” Tadeusz Koscinski said in an interview with Mehr News Agency.

The Polish official added that if the Iranian banking system does not show interest in cooperation, no Polish bank would come to Iran and if the Polish financial system does not show any appetite for boosting exports, Iranian banks will not be willing to have transactions with Poland.

Koscinski noted that the two countries need to assess each other’s preferences, banking systems and companies’ ways of developing exports, and improve the infrastructure to boost relations.

“After financial networks of the two countries are connected, the central banks of the two countries will negotiate opening joint bank accounts and then interbank transactions can take place,” he said.

“When all these measures are in place, the commercial banks will come into play and start opening branches in each other’s country.”

Asked about the current state of Iran-Poland banking relations, Koscinski said, “We are only in the early stages.”

Koscinski also talked about the interest of Polish companies in entering the Iranian market.

“Fortunately, Iran and Poland have many similarities and both countries have similar interests in many important sectors like shipbuilding, pharmaceuticals and mining, so that allows us to work together, without posing a threat to one another,” he said.

The Polish deputy minister noted that both countries have geographic advantages as Poland is located in the center of Europe with a population of 38 million and eases access to the 500 million-strong European Union market while Iran has a population of 80 million and boasts direct access to most parts of the Middle East.

“The peak of our bilateral commercial relations goes back to 10 years when the figure stood at $750 million. However, during the financial crisis, bilateral trade fell to $50 million. After the sanctions against Iran were lifted, exports and imports to and from Iran rose sharply by 80% and 350% respectively to reach $300 million,” he said.

Koscinski ascribed the giant leap in imports from Iran to the resumption of crude oil imports from Iran.