Mellat Bank has three branches in Turkey, operating in the country since 1981.

A US warning to scrutinize the activities of Turkey-based Iranian Mellat Bank has not been welcomed by Ankara. Mellat Bank does not feature in the United Nation’s list of individuals and institutions that assist Tehran’s nuclear program.
“What binds Turkey are the resolutions of the UN and not US presidential decrees or congress decisions,“ a Turkish diplomat told the Turkish Daily News.
Stuart Levey, undersecretary for terrorism and financial intelligence at the US Treasury, met Finance Ministry officials Monday in Ankara. He said: “Special vigilance is required as Iran is being cut off from major banks in Europe.“
US officials have told bankers around the world that Iran is funding ’terrorists’ and seeking nuclear technology. Banks such as UBS AG and Deutsche Bank AG have responded by ending--or severely reducing--their business with Iran.
However, in Ankara US requests have not been responded to in a similar way, according to officials.
Stating that foreign banks operate according to the regulations set by the current Banking Law and are controlled periodically, the official underlined that the conditions of suspending one bank’s operations are clear. “Obviously we cannot move upon a third party’s requests,“ he said.
The Bush administration issued directives last year cutting off three Iranian banks from the US financial system: Melli Bank, Iran’s largest, Saderat Bank and Mellat Bank. Mellat Bank is the only one of those with branches in Turkey, operating in the country since 1981 with three branches in Istanbul, Ankara and Izmir.
The bank, in a statement posted on its website, denied the US claims and said: “The recent allegations made by the USA against Mellat Bank have absolutely no justification or legal ground, and are simply based on illegal and groundless accusations. They are certainly contrary to international law and thus should have no value or effect.“

The US-based business strategy e-magazine, Dinar Standard (DS) rated the National Iranian Oil Company (NIOC) as the second largest company in Islamic countries based on revenues.
The 4th Annual DS100 ranking benchmarked the corporate environment of the 57 OIC (Organization of the Islamic Conference) member countries, according to the website of the magazine.
The 2007 DS100, which based its estimates on 2006 crude oil production, put the NIOC revenues at $90.7 billion, up 20 percent compared to the earnings for the 3rd Annual DS100 ranking.
Saudi Aramco, the world’s top oil producer, continues to lead the DS100 list as the largest business enterprise in the Muslim world recording an estimated 19 percent rise in revenues from the year before.
Overall, the energy sector continues to confirm its dominance based on the mere fact that nine out of the 10 top companies on the list are all state-owned Integrated Oil & Gas companies of which Kuwait Petroleum (the third rank) showed the biggest growth of 38 percent in estimated revenues compared to previous year.
With $1.08 trillion in total revenues and a healthy 14.5 percent in revenue growth over the year before, the ranking shows the continuing strengthening of the Muslim world economies.
Globally, the DS100 companies represent a mere 10.6 percent of the $10.2 trillion in revenues attributed to the global 100 companies from Fortune magazine’s 2007 Global 500 list.
However, a higher revenue growth of 14.5 percent by DS100 companies against the world 100’s revenue growth of 10 percent is a positive sign.
Meanwhile, Iran’s leading auto-manufacturer Iran Khodro with an annual turnover of over eight billion dollars ranked 24th among the top 100 companies in the Muslim world.
The revenues of the giant auto manufacture, largest in Middle East, recorded 12 percent rise compared to the earnings for the year before.
Also, the National Iranian Petrochemical Company ranked 43rd with revenues of $4.6 billion and a significant increase of 30 percent in earnings.
“This year’s ranking highlights the anchor role oil revenues are playing in aggressive diversification of OIC member state economies.“ says Rafi-uddin Shikoh, editor of Dinar Standardª.
“We also see a higher level of maturity in management practices amongst the DS100ª companies which is leading many to embark on global leadership plans. This is a very healthy trend,“ he said.

Once value-added tax (VAT) system comes into effect in September, Iran will join the ranks of a few countries implementing VAT Law with the rate of below 10 percent.
Majlis Economic Commission has put value-added tax rate at 1.5 percent while studies show that out of the total 136 countries, implementing VAT Law, the figure for nine is below 10 percent, for 32 between 10 to 15 percent, for 65 it is between 15 to 20 percent and for 30, it is more than 20 percent.
Although the rate of 15 to 20 percent are being enforced in most of the countries, experiences show that in the initial stages of implementing the system, low rates are more practical, Persian weekly Atieh reported.
A large number of the executives prefer to implement a single VAT rate since it is simple, cost-effective and easily accepted by the public.
However according to a number of socioeconomic theories, single VAT rate system is not compatible with the principles of social justice because various commodities from basic to luxury are covered by the same taxation law and this cannot ensure proper distribution of goods.
Low income families spend a major part of their revenues on basic commodities, therefore levying lower taxes on them is more practical.
Various groups of commodities and services are being exempted from taxation or entitled to different tax rates in some countries based on their economic and social policies.
Experiences of the most countries implementing VAT System indicate that the majority of basic goods and services including agricultural products as well as education, health sector and a number of cultural activities should be either exempted from taxation or be entitled to lower tax rates.
Meanwhile, specifying the ceiling of tax exemption is a determining factor in successful implementation of VAT System.
Given that the value-added earned by a large number of small enterprises and retailers is meager, most countries implementing VAT exempt them from paying taxes in order to increase the efficiency of the taxation system.

The highest amounts of oil revenues were spent during March 2003-March 2007, according to a report by the Central Bank of Iran.
The administration of former president Seyyed Mohammad Khatami during its last two years in office and the incumbent government of President Ahmadinejad in its first two years spent large sums of oil earnings.
The Khatami administration used up to 96 and 93 percent of total oil revenues during the last two years of its tenure, Fars news agency reported Wednesday. In other words, the former government spent $59.8 billion of the total $63.6 billion oil earnings during its last two years in office.
The government earned $27.3 billion from sale of crude, oil derivates and gas condensates during the Iranian year to March 2004 of which $21.9 (excluding Oil Ministry’s share). If the sum given to the ministry is included, the figure would reach $26.2 billion.
Some $26.9 billion out of total $36.3 billion of oil earnings were spent during the fiscal year March 2004-05. The figure stood at $33.6 with the inclusion of ministry’s share.
Spending by the Ahmadinejad administration was also high. The incumbent government used 82 and 93 percent of oil earnings during March 2005-March 2007.
The government sold $48.8 billion of crude, oil derivates and gas condensates during the Iranian year to March 2006 and spent $39.1 billion of it. If the share of the ministry is added, the figure would stand at $45.7 billion.
During the Iranian year to March 2007, the government expended $42.1 billion without ministry’s share and $54.1 billion with the ministry’s share. It is while the Ahmadinejad administration had oil earnings of $57.6 during that year. In other words, total oil revenues stood at $106.4 billion during the two years of which $99.8 billion were spent.

A delegation will visit Beijing to hold talks with Chinese officials on problems facing Iranian businessmen. Chairman of Iran-China Chamber of Commerce Asadollah Asgaroladi added that the team will leave within the next 10 days.
In December, Iranians importing goods from China started complaining about restrictions on trade with the Asian country due to difficulties in opening letters of credit with Chinese banks, reported IRNA Wednesday.
Four earlier delegations sent by Iran Chamber of Commerce, Industries and Mines so far managed to convince Chinese officials to lift restrictions imposed by four banks. However restrictions by six banks are still in force.
“Iranian delegations visited China in the past four months, but banking restrictions and other issues have not yet been resolved,“ the veteran businessman said warning that Tehran-Beijing trade target of $200 in the next 15 years will not materialize if bilateral relations are plagued with such obstacles.
Asgaroladi earlier noted that the suspension of banking ties has not harmed bilateral trade yet and transactions are being conducted through banks based in neighboring countries and cash payments.
Meanwhile, China’s new ambassador, Xie Xiaoyan expressed his country’s interest in investing in Iran’s oil and energy sector.
“China can invest in a variety of sectors including power plant, oil refinery, dam, petrochemical, road and railway,“ he said in a meeting with Chairman of the Majlis Energy Commission Kamal Daneshyar.
The lawmaker, for his part, predicted that cooperation between Tehran and Beijing would expand since Iran plans to build 20 nuclear power plants.

An international seminar organized by Asian Productivity Organization (AFO) kicked off in Tehran on Tuesday.
Representatives from 18 Asian countries including Bangladesh, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Philippines, Sri Lanka, Thailand, Vietnam, Cambodia, Taiwan, Fiji, Laos, Mongolia and Nepal are participating in the three-day event, according to a fax sent to Iran Daily by the Presidential Department for Strategic Planning and Supervision.
Speaking at the gathering, head of National Productivity Center said that APO organizes gatherings in member states to promote national productivity movement and evaluate efforts of national productivity organizations in these countries.
Regarding the results of researches and steps taken by productivity organizations in APO member states, Mohsen Mirzaei said that steps to develop and promote national productivity centers began in 2007.
The measure initially deals with compiling administrative plans in member countries, preparing the grounds for exchanging experience and holding training sessions based on specific needs and priorities of each country.
According to him, four expert groups from 18 member countries have been formed to study and assess the needs and specify the development strategies of national productivity organizations.
The gathering aims to encourage national productivity organizations of APO member states to cooperate in making optimum use of the potential, the official said.
These organizations plan to maintain their strategic role in promoting productivity in their countries, he concluded.
The Majlis Research Center issued proposals in early 2007 to help boost growth and raise productivity in different economic sectors, Fars new agency wrote.
In a survey conducted by the center’s Economic Studies Office, the center compared Iran’s labor and capital productivity indices during 1993-2002 with those of APO member states.
Founded in 1991, APO has a mandate to contribute to socioeconomic development in Asia and the Pacific by advising governments and organizations on ways to enhance productivity.
The research arm of Iran’s legislature blamed low productivity on the establishment of industrial units that lack technical, financial and economic viability. It also singled out inefficient practices and incorrect utilization of machinery and equipment in the key agro sector.

Head of Oil Ministry’s OPEC Affairs Division has said that the oil market does not face special conditions and the Organization of Petroleum Exporting Countries is not expected to make changes in quota in its Friday meeting.
Javad Yarjani told PIN that concern of some countries including Saudi Arabia about the sharp rise in oil prices was among the reasons for calling a meeting in Vienna on February 1.
Iran’s Oil Minister Gholamhossein Nozari earlier said there is no need for more oil as the market is supplied sufficiently and is stable.
The minister said that there was no reason for lifting OPEC output as warm months of the year were approaching.
He added that the market situation would be discussed in the meeting and necessary decisions would be taken.
Meanwhile, Qatar’s energy minister said that OPEC will not raise output quotas at a meeting this week and will consider a supply reduction in the future because world economic growth is slowing and oil inventories are ample.
“The world has sufficient supply, even oversupplied in some places,“ Qatar’s Abdullah bin Hamad Al-Attiyah said in an interview in Doha today. “So to increase, I don’t think this is on the agenda.“