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New bank with 100 percent Iranian capital to be established in Azerbaijan

Business Materials 1 June 2010 09:00
Bank Melli Iran is planning to establish a new bank in Azerbaijan with its own investments, chairman of the presidium and the executive director of the bank, Mahmoud Reza Khavari, who is on a visit to Baku, told Trend on May 31.
New bank with 100 percent Iranian capital to be established in Azerbaijan

Azerbaijan, Baku, May 31 /Trend, T.Jafarov, N. Ismayilova /

Bank Melli Iran is planning to establish a new bank in Azerbaijan with its own investments, chairman of the presidium and the executive director of the bank, Mahmoud Reza Khavari, who is on a visit to Baku, told Trend on May 31.

"These plans are related to projections of bringing trade turnover between Azerbaijan and Iran to $10 billion, said Khavаri. We decided to establish a new bank to achieve these goals." Currently, the annual volume of trade between the countries does not exceed $700 million.

The branch of Bank Melli Iran has been functioning in Baku since 1993.

According to Haver, today the share of assets of Bank Melli Iran makes up 30 percent of the total assets of Iranian banks.

"Today, a meeting with the chairman of the Central Bank of Azerbaijan Elman Rustamov covered the issue of establishing a new bank that was well received by CBA head, Khavari said. And we intend to officially apply to the Central Bank for a license for banking activities on Tuesday or Wednesday".

According to Khavari, the bank will be Azerbaijani, but with 100 percent Iranian capital. The new bank will open branches not only in Baku, but also in major cities of Azerbaijan, as well as in cities bordering with Iran.

"Creating such a bank will help simplify monetary exchange between Azerbaijan and Iran," said Khavari.

The bank's capital will be formed in accordance with the requirements, but the bank will start its activities with a minimum capital of $50 million.

However, he said, by opening accounts and expanding credit operations, bank's capital can be increased to meet the needs of Azerbaijan.

"Most likely we will keep the Baku branch of Bank Melli Iran, but the new bank will enter the banking market of the country with an appropriate name for the country," said Khavari.

Like the Baku branch of Bank Melli Iran, the new bank will employ mainly the residents of Azerbaijan.

Today 47 banks operate in Azerbaijan, 23 of which with foreign capital.
Bank Melli Iran has been operating for 85 years, and the number of its employees reaches 50,000.

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