Bank Mellat issued payment orders worth $6b in post-sanctions

Financial Tribune- Bank Mellat has issued more than $6 billion worth of payment orders since the implementation of Iran’s nuclear accord with world powers last year, announced the bank’s deputy for international affairs.

“During this period, 36 foreign exchange accounts have been opened in foreign countries [by Mellat] and the value of letters of credit issued by the end of the eighth month of the current fiscal year [November 20, 2016] stands at more than $1.1 billion,” Aziz Akhoundi-Asl also said in reference to the international operations of the private bank in the wake of the landmark nuclear accord, reports

Since the removal of international banking restrictions last January, Tehran has secured links with a few smaller banks as US sanctions remain in force and large foreign institutions still fear potential fines.

According to the official, Bank Mellat has also done well with respect to issuing letters of guarantees and also issued the most foreign exchange guarantees among Iranian lenders.

Akhoundi-Asl hoped that the bank’s branch in South Korea’s Seoul would restart operations soon so that effective steps can be taken through this unit during the next Iranian year (starting March 21).

Noting that the Yerevan-based Mellat Bank CJSC, which is fully owned by Iran’s Bank Mellat, will open a branch in Georgia next month, he also pointed to other target countries for establishing branches.

“Bank Mellat has made efforts to establish new branches in Italy, the Netherlands, Switzerland and a number of other target countries, which have not come to fruition yet,” he said.