Identifier
Created
Classification
Origin
06YEREVAN1647
2006-11-28 08:58:00
CONFIDENTIAL
Embassy Yerevan
Cable title:
IRAN'S MELLAT BANK MAINTAINING A SMALL PRESENCE IN
how-toVZCZCXRO9938 RR RUEHBC RUEHDE RUEHDIR RUEHKUK DE RUEHYE #1647 3320858 ZNY CCCCC ZZH R 280858Z NOV 06 FM AMEMBASSY YEREVAN TO RUEHC/SECSTATE WASHDC 4466 INFO RUCNIRA/IRAN COLLECTIVE RUEATRS/DEPT OF TREASURY WASHDC 0456
C O N F I D E N T I A L YEREVAN 001647
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/28/2016
TAGS: PREL ECON IR AM
SUBJECT: IRAN'S MELLAT BANK MAINTAINING A SMALL PRESENCE IN
ARMENIA WHILE IRAN'S ECONOMY REMAINS CLOSED
Classified By: EconOff E. Pelletreau for reasons 1.4 (b,d).
C O N F I D E N T I A L YEREVAN 001647
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/28/2016
TAGS: PREL ECON IR AM
SUBJECT: IRAN'S MELLAT BANK MAINTAINING A SMALL PRESENCE IN
ARMENIA WHILE IRAN'S ECONOMY REMAINS CLOSED
Classified By: EconOff E. Pelletreau for reasons 1.4 (b,d).
1. (C) On November 27, while meeting on other issues, we
spoke with Armenian Central Bank Board Member Vache
Gabrielyan about banking relations between Armenia and Iran.
Gabrielyan said the only Iranian bank in Armenia is Mellat
Bank CJSC Armenia, a wholly-owned subsidiary of Mellat Bank
Iran. He said that Mellat's Armenian presence was small;
just barely large enough to qualify under Armenian banking
rules. It has only one branch, in Yerevan, and apparently
has no plans to expand. (NOTE: According to the Mellat
Armenia website, (www.mellatbank.am) the bank's total
registered capital is USD 5,150,000, just over the
GOAM-mandated minimum of USD 5 million. END NOTE.)
Gabrielyan said the bank's customers were mostly Iranians and
some Iranian-Armenians.
2. (C) Gabrielyan said there were no Armenian banks operating
in Iran because Iran -- "one of the most protectionist
countries in the world" -- would not permit Armenian banks to
open there. He said the only product Iran was happy to
import from Armenia was scrap metal, because it did not
compete with domestically produced Iranian products. Other
Armenian exports to Iran are viewed as threats to local
industry, Gabrielyan said.
3. (C) Gabrielyan said that Iranian goods were less popular
on the Armenian market as well because they are considered to
be low quality. Ten years ago Armenians were buying Iranian
agricultural products, he said, now they buy virtually none.
Goods which are still imported from Iran include plastic
items and furniture, but Gabrielyan said, even Turkish goods
are of higher quality. The Armenian construction market
benefits from proximity to Iran, however. "Every time your
President says 'axis of evil,' apartment prices (in Armenia)
soar," Gabrielyan commented wryly. (COMMENT: The
implication of the comment supports rumors we have heard from
other sources that many Iranians and Iranian-Armenians look
to Armenia as a place to weather the storm should the
situation in Iran deteriorate. END COMMENT.)
GODFREY
SIPDIS
SIPDIS
E.O. 12958: DECL: 11/28/2016
TAGS: PREL ECON IR AM
SUBJECT: IRAN'S MELLAT BANK MAINTAINING A SMALL PRESENCE IN
ARMENIA WHILE IRAN'S ECONOMY REMAINS CLOSED
Classified By: EconOff E. Pelletreau for reasons 1.4 (b,d).
1. (C) On November 27, while meeting on other issues, we
spoke with Armenian Central Bank Board Member Vache
Gabrielyan about banking relations between Armenia and Iran.
Gabrielyan said the only Iranian bank in Armenia is Mellat
Bank CJSC Armenia, a wholly-owned subsidiary of Mellat Bank
Iran. He said that Mellat's Armenian presence was small;
just barely large enough to qualify under Armenian banking
rules. It has only one branch, in Yerevan, and apparently
has no plans to expand. (NOTE: According to the Mellat
Armenia website, (www.mellatbank.am) the bank's total
registered capital is USD 5,150,000, just over the
GOAM-mandated minimum of USD 5 million. END NOTE.)
Gabrielyan said the bank's customers were mostly Iranians and
some Iranian-Armenians.
2. (C) Gabrielyan said there were no Armenian banks operating
in Iran because Iran -- "one of the most protectionist
countries in the world" -- would not permit Armenian banks to
open there. He said the only product Iran was happy to
import from Armenia was scrap metal, because it did not
compete with domestically produced Iranian products. Other
Armenian exports to Iran are viewed as threats to local
industry, Gabrielyan said.
3. (C) Gabrielyan said that Iranian goods were less popular
on the Armenian market as well because they are considered to
be low quality. Ten years ago Armenians were buying Iranian
agricultural products, he said, now they buy virtually none.
Goods which are still imported from Iran include plastic
items and furniture, but Gabrielyan said, even Turkish goods
are of higher quality. The Armenian construction market
benefits from proximity to Iran, however. "Every time your
President says 'axis of evil,' apartment prices (in Armenia)
soar," Gabrielyan commented wryly. (COMMENT: The
implication of the comment supports rumors we have heard from
other sources that many Iranians and Iranian-Armenians look
to Armenia as a place to weather the storm should the
situation in Iran deteriorate. END COMMENT.)
GODFREY