New Iranian bank to appear in Azerbaijan

By Azernews

By Nigar Abbasova

A new Iranian bank may be established in Azerbaijan in the short run, as the two countries are expanding their banking cooperation.  

Iran's Central Bank Chief Valiollah Seif, who is on a visit to Baku, told Trend that a new bank with 100 percent Iranian capital is planned to be created in Azerbaijan.

Seif has already met with Azerbaijan`s Minister of Economy Shahin Mustafayev and the sides discussed cooperation in financial field, exchanged views on the current state of cooperation and prospects of further boosting ties between the banking sectors of the two countries.

Chairman of Azerbaijan`s Central Bank Elman Rustamov, chairman of the Board of Directors of the Financial Markets Supervisory Body Rufat Aslanli were also present in the meeting.

The official also talked about long-perspective plans, under which a branch of the Iranian Bank Melli will turn into a developed and independent Azerbaijani bank, while all the shares of the new bank will be owned by Bank Melli Iran.

 The branch of Bank Melli Iran started to operate in Azerbaijan in 1993.

Currently, 32 banks (including 15 banks with foreign share) operate in Azerbaijan and 36 banks (including branches of five foreign banks and one joint bank) operate in Iran.

Seif added that the issue will be on agenda during the visit of Azerbaijani delegation to Tehran next week.

Besides, the heads of central banks of Iran and Azerbaijan, Valiollah Seif and Elman Rustamov, earlier signed a memorandum of understanding (MOU) envisaging the integration of the two countries’ card systems. The integration mechanism will allow both countries’ citizens to use their bank cards in the two countries’ territories .The issue is currently being studied by a special expert commission.

Seif also talked about the plans to switch to the use national currencies (the manat and the rial) in trade operations. Iran is already carrying out foreign trade settlements in national currencies with a number of countries, and is interested in expanding this tendency with Azerbaijan.