Iran And Syria To Set Up Joint Bank
Bank Saderat Iran (BSI) and Commercial Bank of Syria (CBS) are to establish a joint bank in Syria, under the aegis of the framework agreements signed during the meeting in Damascus last month of their joint economic cooperation commission (MEES, 6 March), BSI announced last week in Tehran. The joint bank, which will be set up along the lines of other private banks which opened in Syria in the past two years or so, will have a capital of S£1,500mn ($29mn), owned 51% and 49% by Syrian and Iranian interests. BSI and CBS will each hold 25% of the bank’s capital. The new venture will offer retail services like other commercial banks, but in addition will play a role in financing private and public Iranian investments in Syria. BSI is state-owned and is the largest bank in Iran with over 3,000 domestic branches, and several overseas. Bilateral trade between the two countries is estimated at $100mn in 2005, while the value of bilateral cooperation is put at $750mn, consisting of a $200mn cement plant in Hamah, the Khodro car assembly plant, renovation of the Banias power plant, construction of 10 concrete grain silos, as well as supply of Iranian technical and engineering services.
