Finance & Banking
Iranian bank to enter Iraq economy
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11 March 2007 (Press TV)
A major Iranian bank will begin operations in war-torn Iraq within the next few days, the head of the Iran-Iraq Joint Chamber of Commerce said.
Hassan Tiz-Maghz said during a high-profile meeting of Iranian and Iraqi economic officials in Tehran that Iran also plans to set up an insurance firm in Iraq, Fars news agency reported.
"Bank Melli Iran will begin work in Iraq within the next few days in cooperation with an Iraqi development bank," Tiz-Maghz said, adding that Iran has also paved the way for establishing an insurance company and an inspection facility in Iraq to examine the quality of goods Iranian companies export to that country.
Iraqi Trade Minister Abd al-Fallah Hassan al-Sudani, who was among the participants at the meeting, said the Iraqi government is seeking to privatize the economy of the oil-rich nation.
"Baghdad favors a market economy," the Iraqi minister said.
He said the Iraqi private sector was badly damaged under former dictator Saddam Hussein, and stressed that efforts were currently underway to revitalize private enterprise in the war-torn nation.
The minister added that last year the Iraqi government allowed private companies to import oil derivatives. Iraq's oil reserves are currently at 115 billion barrels.
"Iran possesses great capabilities," the minister continued, calling for the implementation of prior agreements reached between the two countries.
A senior Iraqi economic delegation was in Tehran earlier this week to explore avenues for cooperation between Iran and Iraq.
Iran has exported over $2 billion worth of non-oil goods to Iraq since last March. The country is the second largest exporter of goods to Iraq after the United Arab Emirates.
Iraq imported a total $13 billion of goods in 2006. The nation's annual budget also increased from $33 billion in 2006 to $41 billion in 2007.
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