TEHRAN (Iran News) – Sanctions Made Spanish Private Banks Cautious in Dealing With Iran. During the Iran-Spain Trade Day meeting, participants referred to the Spanish private banks’ caution regarding deal with Iran due to the sanctions and called for resolving it to materialize the 5-billion-trade target between the two countries.
The meeting was held on the eve of Spain’s national day at the IT Commission of Iran Chamber of Commerce, Industry, Mine and Agriculture (TCCIMA).
Addressing the meeting, President of Iran-Spain Joint Chamber of Commerce Mohammad Taheri referred to holding the virtual Iran-Spain Exhibition and also to the old relations between the countries, adding that the background for cooperation between Iran and Spain dates back to 400 years ago and since then, political and economic cooperation between the two states has continued.
He noted that in recent years and after the removal of sanctions, Spanish trade delegations, accompanied by three ministers, visited Tehran which shows the significance of trade relations with Iran for Spain.
Taheri added that with reimposing the U.S. sanctions against Iran, banking transactions became harder, adding that financial and monetary bodies in Spain are private and due to the sanctions, they are cautious in dealing with Iran because of the U.S. punishment. He said the approach of the banks is wrong and the chamber tries to solve this self-imposed sanction, noting that the condition that the U.S. has implemented in the financial market is in a way, depriving Iran of doing business activities.
He pointed to the trade capacity between the two states which is not in good condition currently but it can be improved by removal of sanctions and back to the normal condition, and the bilateral trade relation will improve. Taheri went on to say that in some issues the two countries can cooperate on the barter basis. He reiterated once the Spanish Association of Manufacturers of Capital Goods (SAMCG) which has office in Tehran was to define a process for financial cooperation but it was not operationalized.
He added that the second solution is the cooperation with the local banks which can expand the ground for cooperation, noting that the chamber attaches value to ties with Spain. He said Spain seeks deepening trade ties with Iran, adding that in Madrid, SAMCG is considered a pro-Iran entity and traders can take advantage of it but the coronavirus pandemic has worsened the condition.
Taheri went on to say that the trade exchange between Iran and Spain in the past years has hit around $3b but due to the restrictions because of the COVID-19, the figure has slumped to $3.15b and it is estimated the potential for bilateral trade between Iran and Spain is $5b.