ID :
124328
Wed, 05/26/2010 - 11:38
Auther :
Shortlink :
https://www.oananews.org//node/124328
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Iran eases rules for joint banks
TEHRAN, May 26 (MNA) -- The Majlis approved a bill on Tuesday according to which foreign entities will be allowed to hold over ten percent of the shares in joint banks with Iran but not more than 49 percent of the shares.
An amendment to the Fourth Socio-Economic Development Plan (2005-2010) had stipulated that real or legal entities could not hold over five percent of shares in joint banks.
The administration of President Mahmoud Ahmadinejad submitted the new bill with the aim of eliminating limitations on the activities of foreign investors in Iran's banking sector.
After the parliament approved the bill, Majlis Speaker Ali Larijani stated that if a foreign entity seeks to have 40 percent of the shares in a joint bank established with an Iranian partner, the decision must be approved by the Majlis.
According to the new bill, joint banks established with legal foreign entities as partners in which over 51 percent of the shares are held by Iranian shareholders will be regarded as Iranian entities.
In February, the director of Iran's Organization for Investment, Economic and Technical Assistance said that monetary and banking regulations were outdated and hindered the activities of foreign banks in Iran.
Behrouz Alishiri added that the Central Bank of Iran and the Money and Credit Council were preparing supervisory rules and regulations to govern the activities of foreign banks in Iran.
An amendment to the Fourth Socio-Economic Development Plan (2005-2010) had stipulated that real or legal entities could not hold over five percent of shares in joint banks.
The administration of President Mahmoud Ahmadinejad submitted the new bill with the aim of eliminating limitations on the activities of foreign investors in Iran's banking sector.
After the parliament approved the bill, Majlis Speaker Ali Larijani stated that if a foreign entity seeks to have 40 percent of the shares in a joint bank established with an Iranian partner, the decision must be approved by the Majlis.
According to the new bill, joint banks established with legal foreign entities as partners in which over 51 percent of the shares are held by Iranian shareholders will be regarded as Iranian entities.
In February, the director of Iran's Organization for Investment, Economic and Technical Assistance said that monetary and banking regulations were outdated and hindered the activities of foreign banks in Iran.
Behrouz Alishiri added that the Central Bank of Iran and the Money and Credit Council were preparing supervisory rules and regulations to govern the activities of foreign banks in Iran.
