Iran to lift foreign ownership ceiling; set up cross-border JV banks; guarantee investments; adopt Basel III

Central Bank of Iran governor Valiollah Seif

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The full text of Central Bank of Iran governor Valiollah Seif’s speech to the 25th Frankfurt European Banking Congress last week, posted on the central bank’s website on 21 November, shows the extent to which he is pushing for Iran to address obstacles to foreign investment in Iran.

He said plans include:

  • lifting the 40 per cent foreign ownership ceiling in companies outside free zones
  • setting up cross border joint venture investment banks
  • providing guarantees for foreign investors through the the Iran Investment &Technical & Economic Assistance Organisation for both the principal and the return on income and,
  • adopting a regulatory framework that is consistent with Basel III.