Chinese banks cut back business with Iran -paper

TEHRAN (Reuters) - Chinese banks have cut back business with Iranian banks due to U.S. pressure over Tehran's nuclear programme, an Iranian Foreign Ministry official was quoted on Saturday as saying.

The United States, which is leading efforts to isolate the Islamic Republic over activities which Washington fears are ultimately aimed at making bombs, has urged international banks and companies to stop dealing with or investing in Iran.

Many Western banks have either halted transactions with Iranian customers or reduced business with them sharply.

But China has expanded commercial ties with Iran in recent years and has been reluctant to impose tough economic sanctions on Tehran. Iran says its nuclear programme is a peaceful drive to produce energy.

"Because of America's pressure, China's banking system has cut its cooperation with Iranian banks for four months now," the Etemad daily quoted Deputy Foreign Minister Mahdi Miraboutalebi as saying, without giving details.

It was not clear whether all or just certain transactions had been halted and Iranian officials were not immediately available for comment.

Asadollah Asgaroladi, the head of the Iran-China chamber of commerce, said in early December that Iranian traders had faced difficulties in opening letters of credit with Chinese banks, restricting a vital instrument in trade.

Saturday's Etemad report said Asgaroladi had called China's banking action unacceptable and an Iranian delegation would visit China in order to remove such business obstacles.