In 1995, when Armenia’s financial system was still in its early stages, Mellat Bank took a bold step by entering the country.

Thirty years later, the bank’s CEO, Seyed Gholamreza Mousavi, reflects on the journey and assures that overcoming the challenges was worthwhile. The bank has become a symbol of Iran’s stable financial presence in Armenia.
 
- Mr. Mousavi, first of all, we’d like to congratulate you on the 30th anniversary of Mellat Bank. How do you feel about reaching this significant milestone?

- Thirty years in Armenia is truly a significant number, one that shows we have deep roots in this country. It’s both pleasant and a source of pride that we’ve been able to play our part in the friendly relations between our countries, Iran and Armenia.

- The bank has branches in two countries in the region – Turkey and Armenia. In 1995, how was the decision made to establish a presence in a newly independent country that lacked a developed financial system?

- After the collapse of the USSR, when several countries gained independence, Iran’s policy was to establish banks or branches in these newly independent countries. Mellat was fortunate to be chosen as the representative bank. To this day, I tell both our board members and the leadership of Iran’s Mellat Bank that it was both a success and an honor for us to have our bank in Armenia - and it is the best of all.

Yes, the financial market of the newly independent Republic of Armenia was unstable back then, but the aim of establishing a bank here was not just about profit; it was about simplifying trade relations between the two countries. From the outset, the bank was not driven by profit. Believe me, if profit had been the primary goal, Mellat would have simply opened another branch in Tehran, particularly given the challenges the bank faced in its early years in Armenia.

- What challenges are you referring to, and how did you overcome them?

- In the process of building legal and financial systems in newly independent countries, a number of issues emerged, often accompanied by economic instability. In the early years, Mellat Bank encountered difficulties related to the loans it issued, arising from legislative gaps and insufficient control mechanisms. However, the bank managed to overcome these challenges, recover losses, attract new investments, and maintain its position.

The Russian crisis of 2014 affected Armenia as well, causing fluctuations in the ruble that reached the country. The Central Bank of Armenia raised the minimum capital requirement for banks, with a deadline set for 2017. It was at that time that I assumed the role of CEO, and we needed to increase capital from 10 billion to 30 billion dram. By mid-2016, we had already reached 32 billion, and an investment from Iran’s parent bank, totaling around 50 million dollars, proved to be a successful strategy amid the strengthening of the Armenian dram.

Of course, the biggest challenge was the international sanctions. After 2018, Mellat’s foreign currency accounts were suspended. Today, despite all the challenges, it is remarkable that the bank continues to operate in Armenia with just one dram account. I believe the bank’s resilience and flexible management are now well-established facts.

- What successes would you highlight after such a challenging journey?

- One of the significant achievements of recent years was obtaining international certification in information security, and investments in this area are ongoing. In 2021, we began operating from our own premises. This is a clear indication that we have long-term plans and are committed to continuing our operations in Armenia’s financial market with a stable and solid foundation.

A key success is that more than 50% of trade between Iran and Armenia is facilitated through Mellat Bank, which was one of our strategic goals. We have also participated in one of the largest infrastructure projects under the Iran-Armenia cooperation framework: the North-South highway construction project, providing financial guarantees to companies. We are prepared to contribute to the second phase of the project and are confident that we will further strengthen the role of the Iran-Armenia financial bridge.

- What values did the bank adopt from the beginning that it continues to uphold today?

- In business, the goal is indeed profit, but we have always emphasized the importance of human relationships - within the team, with partner banks, and in our interactions with customers. From loan approvals to daily communication with employees and partners, we have consistently focused on trust and respect. The cornerstone of Iran Mellat Bank’s motto has always been the principle “the customer is always right.” Both in Iran and Armenia, we believe that the key to success in modern banking is not just innovative technologies and financial tools, but also fostering an atmosphere of trust and providing honest service.

- How does Mellat adapt to the changing demands and needs of its customers?

- To be honest, it’s often challenging. One of our main difficulties is that, due to sanctions, we are still unable to offer banking cards. However, we make up for this gap with extra care. Our employees work longer hours and with more patience. For example, when providing loan services, we make sure that the borrower feels supported by the bank from day one. We don’t limit ourselves to simply granting loans and generating profit - especially in the case of borrowers involved in economic activities in Armenia. Our core principle is that the customer should feel the bank is by their side, not only in good times but also during difficult times.

- Today, the financial market in Armenia has matured, and competition has increased. How do you cope with the competition from partner banks?

- We are genuinely pleased with the stability of Armenia’s financial market and its economic growth, as they positively impact the financial performance of banks. Unfortunately, the sanctions imposed on Iran prevent us from implementing all of our ideas, but we are constantly improving the services we offer. We also celebrate the success of our partners, as we believe that strengthening the banking system contributes to the development of the entire country. Along this path of development, we too will be able to contribute to ensuring Armenia’s financial stability.

- You are part of a huge team; how would you describe the team you’ve built, and what principles do you follow in your leadership that make employees stay at Mellat for many years?

- The most important principle of leadership for me has always been and remains honesty and team spirit. When a leader is honest with their team, that honesty becomes mutual over time, fostering relationships based on trust. At our bank, we don’t attribute successes solely to the leader and failures to the employees; success belongs to everyone. When difficulties arise, and these are brought to my attention, I never blame anyone or say, “It’s your mistake, you fix it.” On the contrary, I first look for a solution myself. I am confident that all our employees have felt this approach. If there is one thing I want to preserve in the years ahead, it’s the human, honest, and united team spirit.

- Your experience shows that the number of customers is only increasing. You started with about 100 customers, and now you’re approaching 5,000. What plans do you have for the coming years?

- One of our key projects is the implementation of a new mobile banking system. Our main goal is for the system not only to meet modern requirements but also to enhance the quality and efficiency of our services for the benefit of our customers. Due to some challenges, the project has been delayed, but we are working hard to have the system fully operational by mid-2026. We are continually developing and making our loan portfolio more flexible, and the growth in our customer base is proof that we are succeeding.

- How do you envision Mellat Bank in the next 10 years?

- I am hopeful and confident that the international sanctions will be lifted, enabling us to operate fully. I believe that soon we will reach the point where our foreign currency accounts will be reopened, we will have branches, and gain access to the SWIFT system. One day, we will look back at our conversation about these challenges with a smile, and I’m sure that day is not far off.

- What does Mellat Bank personally mean to you?

- Mellat Bank is like my second home, and honestly, it is very close to my first. I’ve been with the bank for 27 years, 15 of which have been in Armenia. To be honest, there are not just employees here; I’ve shared a challenging journey with them, full of both tough times and great successes.