TEHRAN: Iran plans to lift a ban on the establishment of foreign banks in the country, said Central Bank Governor ValiollahSeif.
The administration plans to issue a permit, allowing foreign banks to be set up in the mainland, he said, adding that the central bank is also planning to remove problems of opening letter of credit (LC).
For the time being, there is no problem for foreign banks to be set up in free zones. But in the mainland only the establishment of branches is allowed, he explained.
Based on the law, foreign investors can have up to 40 percent share of banks in the country, he noted.
On May 9, Iran’s Vice President Es’haqJahangiri pointed to the growing number of Western companies attempting to return to Iran following the possible removal of sanctions against the country and said Tehran would rather support foreign investment.
Foreign direct investment in Iran totaled $2.105 billion in 2014, according to a recent report by the United Nations Conference on Trade and Development (UNCTAD).
President Hassan Rouhani said on July 31 that after the lifting of sanctions a situation should be created for free trade zones to immediately move toward attracting domestic and foreign investment and turn into hubs for exports.
The FTZs should also turn into centers for production of goods for which there are demands for export, Rouhani said.
To do so the best commercial services commensurate to international standards in banking, insurance, and transportation should be provided, the president said, adding that the ground should be prepared to produce value-added commodities through employing advanced technology with the least amount of red tape.
