Restoration of Ties with Iran Needs Patience: German Banking Official

"Rebuilding ties with Iran requires patience," Michael Kemmer told Reuters on Friday.

"To begin with, the transactions regimen has to work again before the next step of financing projects can take place,” he added.

Elsewhere in his remarks, Kemmer referred to Tehran’s Hermes debt to Berlin and said banking ties between the two countries will revive only after Iran pays its debt to Germany.

Iran reportedly owes Germany about 500 million euros ($569 million) under Hermes covers, a German government arrangement that protects German companies if foreign debtors fail to pay.

Iranian officials have repeatedly stressed that the country is ready to clear the payment, but difficulties in working with foreign banks are still in place despite a lasting nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA), between Tehran and world powers.

The remarks come days before a business summit in Tehran.

Iran's Minister of Economic Affairs and Finance Ali Tayyebnia will co-chair an economic conference with his German counterpart Sigmar Gabriel in Tehran May 2-3, and German companies see the event as a potential catalyst for doubling exports to Iran to 5 billion euros.

While the JCPOA came into force in January, some Iranian officials have complained about the US failure to fully implement the accord.

Last month, Leader of the Islamic Revolution Ayatollah Seyed Ali Khamenei said Americans have yet to fulfill what they were supposed to do as per the nuclear deal.

Iran still has problems in its banking transactions or in restoring its frozen assets, because Western countries and those involved in such processes are afraid of Americans, Imam Khamenei said, criticizing the US for its moves to prevent Iran from taking advantage of the sanctions removal.