Iran lifts restriction on foreign investment in banks

Bloomberg: Iran lifted a cap on the percentage of shares in Iranian banks that can be owned by a foreign individual or company, the government said.

By Ali Sheikholeslami

June 30 (Bloomberg) — Iran lifted a cap on the percentage of shares in Iranian banks that can be owned by a foreign individual or company, the government said.

President Mahmoud Ahmadinejad signed an order on June 27 for government departments, including the Ministry of Economy and Finance, to implement the banking-law amendment approved by the parliament in May, the government said today on its website.

The original law, which applied to both Iranians and foreigners, restricted the amount of shares in a bank that a single company could own to 10 percent and an individual to 5 percent. Iranian ownership of banks is still subject to the limits, the government said.

The U.S. Congress on June 24 approved sanctions on Iran that bar access to the American financial system for banks that do business with the country. The measures also punish foreign suppliers of gasoline to Iran. The U.S. action and United Nations sanctions approved on June 9 are aimed at curbing Iran’s nuclear development.

The government said it proposed the amendment to parliament to encourage investment.