[A-List] Dresdner Bank Joins Others in Withdrawing from Iran
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Thu Aug 23 08:40:53 MDT 2007
International Relations | 22.08.2007
Dresdner Bank Joins Others in Withdrawing From Iran
Germany's big three commercial banks are cutting off business with
Iran under pressure from Washington, but some say that punitive
measures have a limited impact.
Political pressure from the United States as well as rising
administrative costs are reasons that Dresdner Bank is joining other
German financial institutions in withdrawing from Iran, according to
the Financial Times Deutschland (FTD).
"Dresdner Bank is ending its activities with Iran and in Iran," the
financial daily quoted a bank spokesman as saying on Wednesday. By the
end of 2006, Dresdner Bank's lending, which was already below 500
million euros ($674 million), had already fallen to under 100 million.
Export finance guarantees will be maintained through to their
expiration date, according to FTD.
A growing number of European financial institutions, including
Germany's Commerzbank and Deutsche Bank, have also scaled back on
existing business or restricted their dealings in Iran. In July,
Deutsche Bank closed all personal and business accounts in Iran.
US has tried to cut off business to Iran for years
For years, the US government, which has accused Iran of supporting
terrorism, has been trying to isolate the country and cut off
international business there. Washington has also spearheaded a
crackdown on trade and the UN Security Council has imposed sanctions
on Iran in order to put pressure on Tehran's leaders for refusing to
suspend its nuclear enrichment program.
Germany is one of Iran's leading trade partners, but after Germany's
major commercial banks scaled back business last year, exports dropped
by 12 percent for the first half of 2006 compared to the same period
the previous year.
Analysts say, however, that punitive measures against the state are
unlikely to force Tehran to bow to international pressure to halt
uranian enrichment, and that sanctions will have a limited impact as
long as the oil money keeps flowing.
DW staff (df)
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