Iran establishes joint bank with Iraq

Business Materials 10 December 2014 13:28 (UTC +04:00)

Baku, Azerbaijan, Dec. 10

By Umid Niayesh - Trend:

Iran has established a joint bank with Iraq to facilitate bilateral trade, Hassan Motamedi, managing director of Iran's Eghtesad Novin Bank said, the country's Fars news agency reported Dec. 10.

Motamedi said that the Iranian Eghtesad Novin Bank has invested $120 million for establishing the Islamic Regional Cooperation Bank for Development and Investment (Taawon Bank).

He added that the Iranian bank shares 68 percent of the joint bank's capital.

Motamedi said that the bank has various subsidiaries in Iraqi cities and one in Iran, adding despite the security problems the joint bank continues its activities in Iraq.

Iranian Minister of Economic Affairs and Finance Ali Tayyebnia said in May that the volume of trade transactions between Iran and Iraq will reach $20 billion over the next three years.

Tayyebnia put the value of the 2013 trade exchanges between Iran and Iraq at $6 billion.

He said that the value of Tehran-Baghdad transactions, including technical and engineering exports, gas and electricity export and transit hit $12 billion in 2013.

Iraq was second top importer of Iranian goods during the first ten months of 2014. The country imported $4.89 billion worth of goods during the period, according to the Iranian Customs Administration.

Umid Niayesh is Trend Agency's staff journalist, follow him on Twitter: @UmidNiayesh