Iran not withdrawing funds from Europe: Reports

Iranian banks are not moving funds from Europe, the head of a state bank was quoted as saying, contradicting reports that Teheran was withdrawing assets in the face of tightening sanctions over its nuclear program.

"Such an issue has not ever been put forward," Ali Divandari, managing director of Bank Mellat, was quoted as telling the semi-official Mehr News Agency on Tuesday.

His comments were also carried by newspapers yesterday. "Iranian banks do not have any problem with European banks and there is no reason for (transferring) Iranian banks' assets from European banks," Iran News quoted him as saying.