TEHRAN (ecoideal)- A leading Austrian bank, Oberbank, will sign an agreement with Iran to help the country finance its development projects.
"The deal could make Oberbank the first European lender to provide banking facilities to Iran," Oberbank's Chief Executive Franz Gasselsberger, said.
“I think we are the first European bank (to reach such an agreement),” Gasselsberger added.
He said that Oberbank, Austria’s seventh-biggest lender, with a balance sheet of roughly 20 billion euros ($24 billion), is due to host a signing ceremony on September 21 at its headquarters in the city of Linz with envoys from Iran’s central bank and Finance Ministry.
"Executives from 10-12 Iranian banks will also be present for the signing of the agreement, which will enable Oberbank to provide credit for Austrian companies doing business in Iran," Gasselsberger emphasized.
In a meeting in mid-June, governors of central banks of Iran and Austria in a meeting in Vienna underlined the need for broadening of mutual cooperation in economic and banking fields.
During the meeting in the Austrian capital, Governor of Central Bank of Iran Valiollah Seif and President of Oesterreichische Nationalbank (OeNB) Ewald Nowotny explored avenues for bolstering and reinvigorating bilateral ties in the banking field.
"Some Austrian banks, like Oberbank and Raiffeisen, hold ties with their Iranian counterparts," Seif said.
Nowotny, for his part, said that there are huge differences between European and American banking systems, adding, "These contrasts affect how regulations and policies are made."
OeNB President described reducing the volume of outstanding loans in banks as a major issue, and said, "The issue of reducing non-performing loans is also significant for the Iranian economy as stated by the report of International Monetary Fund (IMF)."
Source: Farsnews