TEHRAN Credit Institute for Development (CID) has made a large-scale investment in the purchase of an advanced software in order to communicate with other banks worldwide via the intranet. The software will be installed as of 2002, simultaneous with the development of the network, chairman of the Credit Institute for Development's (CID) board of directors, Sharam Salmassi reported on 5 September 2001.

For the first time, CID is to substitute traditional banking practices with electronic banking, he said.

The official noted that inauguration of the new system will obviate the need for customers referring to different bank branches and they would transact banking business through personal computers.

Salmassi went on to say that CID is trying to get an international banking license through its representative offices in UAE.

CID is waiting for a permit from the Central Bank of Iran (CBI) for providing banking services to Iranian expatriates, especially those residing in the Persian Gulf littoral states. CID has submitted a request to transform the institute into a private bank. The request is currently being studied.

Salmassi said that the institute has also applied for permission to increase its capital to Rls.250 billion ($31.25 million) as a prerequisite for becoming a private bank.

The official reported that public deposits with CID hit Rls627 billion ($78.38 million) by the end of the last Iranian year (ended March 20, 2001), showing an increase of 112% compared to the preceding year.

The figure has increased by 62% during the first half of the current year and has reached Rls.1,020 billion ($127.5 million), he said.

Salmassi stated that 9% of the institute's financial resources comprise of foreign investments in rials. He added that most of CDI's investment has been made in the housing and industrial sectors.

He further added that CID has constructed 1,500 housing units at a price 35% below the market rate and disbursed Rls.270 billion ($33.75 million) in loans, he concluded.