Croatia’s Central Bank Keen on Iran Linkage

EghtesadOnline: In another step toward Iran’s gradual revival of banking ties with the international community, the governor of the central bank of Croatia has announced that the European nation’s biggest lender is eager to connect with its Iranian counterparts.

News ID: ۷۴۳۶۱۷

02 September 2017

“We have initiated negotiations with Croatian banks so that cooperation between Iranian and Croatian banks can begin in payment transactions and fortunately we have made good progress,” Boris Vujcic was quoted as saying by the official news website of the Central Bank of Iran.

“In this regard, Croatia’s biggest bank is looking to expand and deepen its ties with Iran,” he also reportedly said in his meeting with CBI Governor Valiollah Seif, without specifying the name of the bank.

Hrvatska Potanska Banka, headquartered in Zagreb, is the largest Croatian bank. According to its website, the Republic of Croatia directly owns 42.42% of its shares while the rest belongs to other state entities, Financial Tribune reported.

Vujcic, who heads the Croatian National Bank, as the nation’s central bank is known, referred to the visit by an Iranian business delegation scheduled for next month as an opportunity for expanding bilateral ties.

While representatives of Iranian companies led by the Iran Chamber of Commerce, Industries, Mines and Agriculture will soon travel to Croatia as part of the delegation, the official said Iranian lenders could also join the delegation to gain a better understanding of their Croatian counterparts.

“In addition to this, the Croatian government has held negotiations with state-owned banks to expand trade ties,” Vujcic said, but also pointed out that as a policymaker, the Croatian National Bank can only encourage the nation’s banks to work with their international counterparts.

“Ultimately, it will be the banks themselves that must choose to establish strong ties and decide to expand their joint activities,” he added.

However, Vujcic said a number of Croatian companies have expressed readiness to work in Iran, which sign could herald better banking ties.

Seif noted that Iranian banks wish to establish ties with Croatian lenders to expand trade ties.

“Croatian banks can initially form ties with state-owned Iranian banks and expand their ties gradually after they become familiar with our economy,” he said.

Seif stressed that Iranian lenders are working to improve in terms of conforming to international standards and the economy has immensely progressed since the nuclear deal provided sanctions relief.