European Investment Bank can not invest in Iran, EIB chief says

BRUSSELS (Reuters) – The European Investment Bank would have its global operations at risk by investing in Iran, its president said on Wednesday, the most public rejection of a plan to help save a nuclear deal with Tehran that Washington has

Werner Hoyer said that while he was still in the nuclear power market, Iran is a place "where we can not play an active role."

The EIB, the European Union's lending arm, fears that working with Iran would have a greater impact on its operations. Hoyer said the bank is indebted by 500 billion euros ($ 580.80 billion) in bond issues.

In an effort to help keep money flowing to Tehran as US sanctions come back into effect, the European Union has agreed to add to the list of with the Luxembourg-based EIB, the bloc's not-for-profit lender, does business

However, the decision, which takes effect at the start of August, does not require the bank to do business there [19659006] US President Donald Trump pulled out of the Iran deal with world powers on May 8 and revived Iran-related sanctions, leaving the European Union, China and Russia to try to prevent the Tehran from developing a nuclear weapon.

The pillars of the EU's strategy are: EIB lending, a special measure to shield EU companies from US government sanctions and a Commission proposal that makes them direct money transfers to Iran's central bank to avoid US penalties.

"There is no European bank which is presently able to do business in Iran, "Commented on the European Commission.

" We have to take note of the fact that we would risk the business model of the bank. Iran. "

The EIB currently operates as a high-risk under the FATF, a global anti-money-laundering agencies. That includes Iran.

($ 1 = 0.8609 euros)

(Reporting by Robin Emmott and Alissa de Carbonnel; Editing by Raissa Kasolowsky)