EU nations working with Iran to lift burden of banking regulations
(10 March 2016 – Europe) European nations are working together alleviate the impact of banking restrictions on trade with Iran, Business Secretary Sajid Javid said this week, adding that the UK had signed a deal to simplify the financing of exports.
Banking restrictions were among other international sanctions that were lifted in January as part of a deal in which Tehran agreed to limit its nuclear program.
Javid told conference delegates in London “For many firms it's not actually clear what you can or cannot do according to, let's say, U.S. rules. That's why one of the things that as a minimum has to be done quite quickly is to bring some clarity.”
Britain’s former finance minister Norman Lamont, and current trade envoy to Iran highlighted the problem, adding that he had struggled to get senior bank executives in London to meet with a Iranian central bank chiefs.
"Terrified, they were," he said. "European banks, very much so the British banks, are very frightened of falling foul of what I would call the extra-territorial reach of American law."
Further, Britain's export agency and its Iranian counterpart signed a memorandum of understanding according to Javid.
The partnership will see UK Export Finance and the Export Guarantee Fund, an Iranian state-owned insurance company, work together to identify opportunities for trade in capital goods, equipment and services.
The move follows other European Union countries including Italy, France and Germany who have already agreed to billions of dollars’ worth of deals, amidst a backlash from the UK’s business community that the government is moving too slowly.
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