Iraq to Open Bank Branches in Iran's Free Zone

The managing director of Iran's Arvand Free Zone, Ali-Asghar Parhizgar, has said Iraqi banks have filed requests to set up branches in the zone, according to a report from Tehran Times.

Since the establishment of foreign banks' branches in Iran's free zones was facilitated, Iraqi banks have welcomed setting up shops in Arvand Free Zone, IRNA quoted Parhizgar as saying.

Negotiations have been held with Iraqi banks in that regard, given that Arvand Free Zone has great potential to host foreign banks' branches, he further explained.

There were some legal setbacks for setting up foreign banks and representative offices of insurance companies in Iran's free zones, but the Iranian government has removed the obstacles and provided legal facilities for establishment of foreign bank branches in Arvand Free Zone, he continued.

According to the Iranian official, establishment of foreign bank branches in the country's free zones could encourage domestic and foreign investment in the area.

Positive measures have been adopted to identify major banks in countries that enjoy good relations with the Islamic Republic, he added.

A fourth round of US-backed UN sanctions against Iran has banned world states from continuing to work with Iranian banking and energy sectors.

(Source: Tehran Times)

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