Iran, South Africa to establish joint bank

Baku, Azerbaijan, Apr. 27 By Fatih Karimov - Trend: Iran, South Africa will establish joint bank, Ali Tayebnia, Iranian Economy Minister said. He made the remarks during a meeting with South African counterpart Pravin Gordhan on a visit April 23, Mehr news agency reported. Tayebnia said that based on the negotiations and signed documents, an Iranian bank will open a joint bank in South Africa. He further said that according to the signed document, correspondent relations between Iranian and South African banks will be established. The Iranian minister said that establishing correspondent banking relations, as well as a joint bank between the two countries are vital for boosting mutual cooperation. He expressed hope that the trade turnover between Tehran and Pretoria will reach over $2 billion in coming years. Tayebnia also said that three memorandums of understanding will be signed April 24 between the two countries, adding one deal envisages a joint committee and investments between Iran and South Africa. Gordhan said that the two sides agreed to boost their economic ties and financial cooperation in the post-sanctions period. He also said that the two countries will sign a MoU on insurance collaborations. South African President Jacob Zuma arrived in Tehran on April 23 at the invitation of his Iranian counterpart Hassan Rouhani. Heading a high-ranking 180-member economic and politic delegation, Zuma will meet with senior Iranian officials including President Rouhani. Strengthening mutual economic cooperation will be on the agenda of the talks. Several economic and trade documents will be signed by the two countries' delegations on the sidelines of the presidents' meeting. Pretoria was one of Iran's traditional oil markets before the imposition of sanctions on the Islamic Republic due to its disputed nuclear program. Before sanctions cut down Iran's crude oil exports in June 2012, South Africa was buying on average 68,000 barrels of oil from Tehran per day.