Iran banks to set up in Germany

The Central Bank announced late on Sept. 4 that Middle East Bank and Sina Bank would set up in Germany’s Bavaria state, following a visit by local economy minister Ilse Aigner to Tehran.

“This is a first since the revolution of 1979. We hope to open our branch by the end of 2016,” Parviz Aghili, director general of Middle East Bank, told AFP.

Iran’s Central Bank is also now working with its German counterpart and several banks in the country to settle oil exports in euros.

“The Central Bank is focused on developing banking relations with other countries,” said Akbar Komeijani, vice president of the central bank, in a statement on its website.     

Germany was one of Iran’s main trading partners until international sanctions were imposed over its nuclear program in 2012.     

Despite sanctions being lifted under last year’s nuclear deal; major European banks have been reluctant to work with Iran, fearing continuing U.S. non-nuclear sanctions.

Only a few small European banks without ties to the U.S. have been willing to work with Iran, meaning that major trade deals have been stalled.