German Bank says initiated business with 20 Iranian banks, financial institutes

IRNA – Thomas Junge, director of the EIH-BANK of Germany says that the German bank initiated business with Iranian banks and financial institutes and the prospect for improving EU trade relations is positive.
Speaking to IRNA, Junge said: We are EIHBANK of Germany, the hub presently for payments from Iran to Europe.

‘We have rebuilt our business relations with Iranian financial institute and cooperate with more than 20 banks. We are also advising letters of Credit to customers all over Europe and not only Germany.

Asked about the future trade relations between Iran and the West, Junge said that situation is improving since the implementation day. A lot of companies are eager to do business in Iran. I see a very good prospect for companies retuning to normalization of relationship with Iran.

He said that the European banks have started cooperation with Iranian banks.

Junge said that Iranian banks have been away from western financing system for roughly ten years but they are now restarting their business.

‘They have done their homework, they are working based on all regulations and are getting to international standards to cooperate with major European banks.’

In response to a question about the future of major banks dealing with Iran, he said, ‘I am sure that the situation will ease but it will take time and some patience.
‘As you can see the big banks in Europe are quite reluctant to do business with Iran at the moment because they are afraid of the primary US sanctions. But more and more banks are coming back to Iran and accepting money for the clients.’

He said that in Europe there are hundreds of smaller banks which are already open minded towards Iran business.

Q. ‘What sort of timeframe are we looking at for normalization of major banks doing business with Iran?
A. he said: It is a steady process and will continue improving over the next few months.
‘Everybody are waiting to see what will happen after the election in the US, but, I think that will pave the way to get back to normality.’

Junge said: ‘Whether it is Donald Trump or Hilary Clinton, I don’t think the politics will change.’

‘I think both sides know that they depend on each other economic wise and political wise. I think also the US is interested to do business with Iran.’

He said: There is no doubt that US signed the JCPOA because they have their own interest to do business with Iran. They did not want to leave the business for the European companies and banks.

Junge cited Boeing sales of Airplane to Iran and said: As you have seen Boeing has started doing business, a big business with Iran and there are several American companies which already have started business with the OFAC license of the US Department of Treasury.