German banks stand by Iran despite U.S sanctions
While Germany’s big banks are studiously avoiding Iran-related deals for fear of US reprisals, six credit unions, or Volksbanken, from southern Germany are appear unafraid and are continuing to provide trade finance.
Patrizia Melfi, head of the International Competence Center, which was set up by the banks to handle foreign business, said the supervisory board “gave us the green light on Thursday.” Days later, the US’ Secretary of State Mike Pompeo threatened to impose “the strongest sanctions in history” after the United States pulled out of the 2015 nuclear deal this month.
Basically, as long as companies and banks stick to the requirements and regulations of the current export controls of the EU and the US, nothing can happen to them, Ms. Melfi said. She added it was essential “to be well informed and conduct detailed checks of the companies’ deals.”
“As long as companies and banks stick to the requirements and regulations of the current export controls of the EU and the US, nothing can happen to them.”
The credit unions – Volksbank am Württemberg, Pforzheim, Heilbronn, Konstanz, Schwarzwald-Donau-Neckar and Vereinigte Volksbank – are showing considerably more guts than bigger players. Deutsche Bank, Commerzbank and DZ Bank are already giving Iran the cold shoulder.
Deutsche Bank said it has always been “reticent” regarding the financing of Iranian deals. DZ Bank said it was now stopping all foreign payments relating to Iran.
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