Global banks set to re-es­tab­lish links with Iran

The Pak Banker - - COMPANIES/BOSS -

In­ter­na­tional banks are pre­par­ing to re-es­tab­lish links with their Ira­nian coun­ter­parts us­ing the SWIFT trans­ac­tions sys­tem, the head of Iran's Middle East Bank said to­day.

But it is likely to take at least two weeks be­fore the con­nec­tions will be set up, which will al­low Ira­nian lenders to en­gage with the global bank­ing world for the first time since re­stric­tions were im­posed in 2012.

A nu­clear deal be­tween world pow­ers and Iran led to the re­moval of the curbs on Tehran's bank­ing, in­sur­ance and ship­ping sec­tors, as well as re­stric­tions on oil ex­ports.

The SWIFT (So­ci­ety for the World­wide In­ter­bank Fi­nan­cial Tele comm uni ca tions) sys­tem is used to trans­mit let­ters of credit and pay­ments.

"We have sent al­most 40 SWIFTS to dif­fer­ent banks around the world and we have re­quested that now that the sanc­tions are lifted, we would like to ex­change doc­u­ments and whether they will con­sider a correspondent bank­ing re­la­tion­ship," said Parviz Aghili, CEO of Tehran-based Middle East Bank.

"Some of them have come back and have asked for var­i­ous ques­tions, for doc­u­ments they need. My feel­ing is it is go­ing to take a cou­ple of weeks or so be­fore we start to see proper reen­gage­ment. It will be slowly, slowly," he said.

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