Germany to open bank in Iran to facilitate trade

Central Bank of Iran (CBI) announced Monday that Germany will set up a bank in Iran to facilitate its trade transactions with the Iranian side.

In a recent visit by German Vice-Chancellor and Minister for Economic Affairs and Energy Sigmar Gabriel, who headed a high-ranking German delegation to Tehran, it was agreed that the European country establish a bank in Iran, CBI governor Valiollah Seif was quoted as saying by Tasnim news agency.

There is no restriction for foreign banks to establish financial institutions in Iran, Seif said. "According to the regulations of free trade zones in Iran, foreign countries can establish new banks or bank branches in the free trade zone areas," he said.

On July 19, Gabriel visited Tehran to discuss the boost of economic ties with post-sanctions Iran.

After more than two weeks of intensive talks in Vienna, Austria's capital city, six world major countries, including China, France, Germany, Russia, Britain and the United States, along with Tehran agreed on July 14 on an accord concerning Iran's nuclear program.

Iran has been a target of UN and western sanctions due to its alleged attempts to build nuclear weapons.

The landmark deal is expected to put Iran on the path of sanctions relief on its economy and financial institutions but more limits on its nuclear program.