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Fitch studying Iran as businesses rush in

Friday, 01 July 2016 5:02 PM [ Last Update: Friday, 01 July 2016 5:02 PM ]

The global rating agency Fitch is preparing to prepare an initial assessment of Iran’s economy as businesses are increasingly showing interest in the country’s post-sanctions business potentials.

Iran says the global rating agency Fitch has recently visited the country in light of the growing interest of banks and businesses in its post-sanctions investment opportunities.

Akbar Komijani, deputy governor of the Central Bank of Iran, has told Bloomberg that Fitch made a trip to Tehran earlier this month to make an initial assessment of the economy.

Fitch “have started to review the developments in the financial sector and banking sector situations, and in general the macroeconomic conditions,” he said. “They are starting their regular activity.”

The rating agency has accordingly confirmed to Bloomberg that it has been in discussions with Iran but declining to say if, or when, it was likely to issue a rating.

European and Asian banks, including “major” lenders, are returning to the Islamic Republic, Komijani said in the interview. “Some of the medium-sized and small banks have accelerated their operations.”

This follows an announcement by the International Monetary Fund earlier this week that Iran has the ability to increase global confidence in its economy after the removal of the sanctions.

"They are attempting to restore confidence where sanctions removal is creating opportunities," the Weekly Standard has quoted David Lipton, the IMF's first deputy managing director, as saying. "They want to and are trying to open accounts with foreign banks," Lipton said during an event at the Carnegie Endowment for International Peace on Wednesday.

Lipton praised state efforts to respond to criticism from the Financial Action Task Force (FATF). FATF temporarily suspended countermeasures against Iran in its latest assessment of the country's financial climate.

"The Central Bank is dedicated to creating an anti-money laundering, countering financing [of] terrorism supervisory regime," the Weekly Standard further quoted Lipton as saying. "They have passed a counter-terrorism financing law. It's not perfect, but it's a start."

He said that the Central Bank's supervisory regime would give confidence to foreign companies looking to do business with Iran, though he did not deny that the country might continue engaging in illicit activities.

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