Commerzbank pares ties with Iran

AFP: Commerzbank, the second-biggest bank in Germany, is to join other European banks in curtailing its activities with Iran, a spokesman said on Wednesday, as the United States seeks to isolate Teheran economically. FRANKFURT, Jan 10, 2007 (AFP) – Commerzbank, the second-biggest bank in Germany, is to join other European banks in curtailing its activities with Iran, a spokesman said on Wednesday, as the United States seeks to isolate Teheran economically.

Commerzbank will stop handling dollar transactions for Iran its its New York branch by the end of this month, the spokesman said, confirming a corresponding report in the Wall Street Journal Europe on Wednesday.

But the German bank would continue to handle euro transactions for Iranian clients, he added.

A number of European banks, such as Credit Suisse and UBS, have already taken similar decisions, paring back or ceasing altogether their operations with Iran.

The US says Iran’s state-controlled banks support terrorism and Washington is also seeking to financially quarantine Iran because of Teheran’s vows to press ahead with its nuclear programme in defiance of international will.