CBI Warns German Banks not to End Operations in Iran

A025154810.jpgCentral Bank of the Islamic Republic of Iran has warned German banks that their withdrawal from the country may result in business disadvantages in the future, the bank’s vice governor Mohammad Jafar Mojarrad said. “There is no guarantee that they may return in good times. Our economic relations are based on trust and it’s very difficult to restore trust once it has been breached,” he said in an interview with Financial Times Deutschland.

Mojarrad added that banks from Asia, Russia and the Persian Gulf Region are prepared to take over the German banks’ business in Iran.

Deutsche Bank and Commerzbank gradually shut down their Iranian operations in the past months and last week Allianz’s Dresdner Bank said it will also discontinue its business relations with the country.

According to the report, the banks were put under pressure from Washington to cut ties to Iran as part of the United States’ plan to cut the country off from international money transactions as long as it refuses to give up its nuclear rights.

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