Iraqi: The Outdated State of Iranian Banks is the Reason for Some Existing Banking Problems

Iran's Deputy Foreign Minister Abbas Araghchi stated that the problems faced by Iranian banks and insurance companies in collaborating economically with foreign countries have been "resolved" and there is "no deadlock" in this regard. However, he noted that there are issues partly related to foreign countries and partly due to the "outdated" state of Iranian banks. In a session of the National Security and Foreign Policy Commission of the Iranian Parliament on Saturday, October 16, Araghchi said that the Vienna nuclear agreement is being implemented "well" and that "issues in the insurance and economic transactions have been resolved." He added that there is no deadlock in the monetary and banking sector, but there are challenges, some of which stem from external factors and some from the readiness and modernization of domestic banks. He also mentioned that the Islamic Republic expects the West to create "completely favorable conditions" in accordance with the Vienna nuclear agreement. On May 15, Araghchi had stated that, aside from European banks' concerns about sanctions, "weak financial discipline" among Iranian banks has also played a role in the lack of cooperation from European banks, which the Central Bank is working to address. On May 19, the U.S. Secretary of State and his counterparts from Britain, Germany, and France, along with the EU's foreign policy chief, issued a statement urging banks and traders not to overlook legal investment opportunities in Iran. These countries also expressed their readiness to alleviate doubts in this regard. Despite this statement, Iranian officials have repeatedly emphasized that sanctions against Iran have been lifted on paper, but European countries need to make "greater efforts" to remove the "existing psychological atmosphere, especially regarding banking interactions." Meanwhile, Valiollah Seif, the head of the Central Bank of Iran, announced on Saturday that after the Vienna nuclear agreement, "relatively appropriate" relations have been established between Iranian banks and foreign banks, and this level of banking connections "partially resolves" Iran's foreign trade issues. He also stated that this situation cannot be considered as "normalization of banking relations" and that the current conditions are not satisfactory compared to the expectations that existed before the JCPOA. He accused the U.S. of not fully implementing its commitments under the Vienna nuclear agreement, and noted that Western banks hesitate to cooperate with Iran due to fear of U.S. repercussions. In response to Iran's criticisms, U.S. officials have stated that they have fulfilled all their commitments under the JCPOA and that some of the current sanctions are related to primary sanctions that are unrelated to the nuclear agreement. The U.S. elections are also not "without impact" on the implementation of the JCPOA. Araghchi also mentioned that primary sanctions, sanctions related to human rights and terrorism, and the non-implementation of the Financial Action Task Force regulations hinder Iran from benefiting from the implementation of the Vienna nuclear agreement. He emphasized that the U.S. elections are also "not without impact" on the implementation of the JCPOA and that "many economic entities are in a state of limbo." His remarks come after Iranian Foreign Minister Mohammad Javad Zarif had previously dismissed statements by Donald Trump, the Republican presidential candidate, as "election propaganda" and stated that claims made during the U.S. election campaign should not be taken seriously. Trump has stated that his main priority is to cancel the nuclear agreement with Iran. In contrast, Ayatollah Ali Khamenei, the leader of the Islamic Republic, stated on Tuesday, June 15, that if the Americans "tear up the JCPOA, we will burn it." In his remarks on Saturday, Araghchi also stated that the conditions set by the Supreme Leader regarding the implementation of the Vienna nuclear agreement have been "operationalized and pursued". According to Araghchi, written documents regarding the implementation of the Supreme Leader's conditions have been submitted to the Supreme National Security Council and the National Security and Foreign Policy Commission of the Parliament. He also mentioned that the new U.S. sanctions contradict the conditions set by the Supreme Leader. Araghchi had previously stated that the new U.S. sanctions contradict the Supreme Leader's conditions but do not violate the Vienna nuclear agreement. Ali Akbar Velayati, the international affairs advisor to the leader of Iran and a member of the oversight board for the JCPOA, stated on Tuesday, July 10, that "some of the nine conditions" set by the Supreme Leader "were not implemented in the JCPOA." Ayatollah Khamenei had announced conditions for the implementation of the Vienna nuclear agreement on October 20, 2015, and threatened that any imposition of sanctions "at any level and for any reason" during the eight-year period by the negotiating countries would be considered a violation of the Vienna nuclear agreement. In this context, the head of the Central Bank of Iran called for the support of European banks and companies.