Austria’s Oberbank is going to finance new ventures in Iran, according to a deal that is about to be signed in September 21st in Linz, at the headquarters of the Oberbank. The signing ceremony is hosted by Austrian bank and envoys from Iran’s central Bank & Finance ministry, according to Franz Gasselsberger, the chief executive of Oberbank.
Executives from 10-12 Iranian banks will also be present for the signing of the agreement, which will enable Oberbank to provide credit for Austrian companies doing business in Iran, Gasselsberger told Reuters on Thursday.
However, many banks and companies have stayed away for fear of inadvertently breaking remaining U.S. sanctions, which could lead to conflicts and fines, but Oberbank, that the 7th biggest lender of Austria is taking its chances
Based on Iranian authorities say that Oberbank is the first European bank (to reach such an agreement). Evidently some Germans and Italians are also negotiating, also a Danish bank was in talks. Denmark’s Danske Bank said in January that it was negotiating with Iran’s central bank.
The Oberbank agreement with Iran aims to finance projects by Austrian companies in Iran, that last more than two years,For now, the targeted sectors are the ones that were previously under sanctions. Oberbank also supports the financing of Austrian exporting companies in areas such as food.
Export credit guarantees covering 99 % of a project’s volume by the Oesterreichische Kontrollbank.
Although President Hassan Rouhani cancelled a visit to Austria in March 2016, Iranian business executives went ahead with the trip and signed outline deals with Austrian exporters, that is now leading to more financial relations.