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Iranian Mellat Bank enters Georgian Market

Iranian Mellat Bank enters Georgian Market

Iranian Mellat Bank enters Georgian market. The CEO of Iran Chamber of Commerce, Rahim Abachi told CBW exclusively that Mellat Bank recently has been actively spreading information in the Iranian Media about the plans on entering the Georgian market.

According to Mr. Abachi, the talks about the entrance started in May.

“However, I can’t really predict the future and say whether Mellat Banks begins operating in Georgia, or not,” said Abachi.

He also noted that unless Iranian sanctions are resolved, there is no sense in entering the Georgian market.

“If the bank arrives and makes no transactions, then what is the point?” Abachi said.

The Ambassador Extraordinary and Plenipotentiary of Georgia to Iran and Islamic Republic of Pakistan, Ioseb Chakhvashvili told CBW exclusively that unless Iranian Bank opens in Georgia, money transactions problem stays omnipresent issue.

“Several months ago Prime Minister of Georgia, Giorgi Kvirikashvili visited Iran, where he met first vice president of Iran, Eshaq Jahangiri. At the meeting there was talk of deepening trade-economic relations between the two countries. Maybe in the frames of abovementioned relations the Iranian bank enters Georgia,” told CBW Mr. Chakhvashvili.

It is unknown to Rahim Abachi, the CEO of Iran Chamber of Commerce, whether Mellat Bank has already applied the National Bank for obtaining a bank license, but he notes that negotiations are ongoing. However, the details of talks are unknown to him.

As for the question, will the transactions to Iran could be made only by Iranian bank after the entrance of Mellat Bank in Georgia, Rahim Abachi explains that in this case the money transfers between two countries will probably be made by Mellat Bank only.

CBW is working on this issue and the comments from Embassy of Iran in Georgia and Georgian National Bank will be delivered later.

Bank Mellat is a private Iranian bank. Bank was established in 1980 after uniting 10 banks. Currently Mellat is one of the largest commercial banks in the Islamic Republic of Iran, ranking among the top 1000 banks of the world. Mellat Bank has 11 international branches and services in 11 countries, including Afghanistan, Azerbaijan, France, Germany and Great Britain.

Iranian Media actively highlights the process of entering Mellat Bank to Georgian Market. According to Iranian Financial Tribune, Mellat Bank Yerevan, subsidiary of Iran’s Bank Mellat, will open a new branch in Georgia by the end of the first half of the current Iranian year (Sept. 22), said Bank Mellat’s chief executive.

“We have obtained the permission to establish a branch in Tbilisi and plan to start employing staff,” Hadi Akhlaghi was also quoted as saying by IBENA on Sunday.

Bank Mellat opened a subsidiary in Armenia in 1996 in accordance with the agreement signed with the Central Bank of Armenia. Back in October 2016, it was announced that Yerevan-based Bank Mellat CJSC, fully owned by Iran’s Bank Mellat, increased its authorized capital in compliance with the new requirement of the Central Bank of Armenia. The bank also opened its new headquarters in Yerevan. Bank Mellat also plans to expand ties with both Malaysia and South Korea in the coming months.

Mellat Bank currently has 1,900 branches inside Iran and provides services to more than 30 million customers.