Iran and Iraq to establish joint regional bank (11/10/05)

Iran and Iraq are to establish a joint bank with initial capital of $35 million. The bank is going to be a joint venture between the Bank Keshavarzi of Iran and an Iraqi bank assuming the title of ‘Regional Investment and Development Bank’ (RIDB), acting director and board member of Bank Keshavarzi Bahman Yazdkhasti said on Monday.

The Central Bank of Iran (CBI) and that of Iraq have already given their agreements in principle to their respective banks and the RIDB’s activity would start before March 20, 2005. The Bank Keshavarzi would own 65% of the joint bank’s shares and based on the agreement made 3 board members would be from the Iranian side, Yazdkhasti added.

Due to the warm reception of Iran-made products in Iraq particularly among the Shiite population, the establishment of such a bank could play an effective role in expansion of economic relations between two neighboring countries. Moreover, besides Baghdad, RIDB is going to branch out in other cities of Iraq such as Basra, Karbala, Soleymaniyeh, and Najaf, the acting director stated.

Source: Iraqdirectory