SPIEGELONLINE INTERNATIONAL: In an effort to forestall an American military strike against Iran, German Chancellor Angela Merkel is pushing for tougher economic sanctions against the mullah-controlled regime in Tehran. But critics say Merkel's plans are sketchy and difficult to implement, while experts disagree over their effectiveness.
The group of dignitaries from Tehran visiting Hamburg last Wednesday seemed noticeably pleased -- and it wasn't just the unseasonably warm weather. They had spent the morning attending a board meeting of the Iran-Europe Commercial Bank. The mood couldn't have been better.
The Iranian government bankers enjoyed the spectacular view from the bank's penthouse-level conference room as much as they did hearing its latest quarterly results. Indeed, before adjourning to the adjacent room for Persian delicacies, management reported the best results in the bank's history.
Even the representative from the German Financial Supervisory Authority (BaFin) seemed impressed. Now that all major German banks have given in to pressure from the United States government and stopped doing business in Iran, business is booming for the Hamburg-based Iranian bank. Its commercial loan portfolio, worth about €3 billion ($4.4 billion), is twice as large as it was last year.
Machinery exporters and trading companies have practically been lining up to move their business from their traditional German banks to the Iranian bank, despite the fact that the US Treasury Department has blacklisted Iran-Europe Commercial Bank, together with two other major Iranian banks, Bank Melli and Bank Saderat. Ironically, Iran's state-owned banks are among the few businesses that have actually benefited and managed to turn a profit from tighter international sanctions against Tehran. GERMANY INC. IN TEHRAN: Berlin Faces Hurdles in Push to Get Business Out of Iran (more)
Mark Alexander
