The governor of the Central Bank of Iran says the Islamic Republic has allowed several foreign banks to open branches in the country.

"We have overcome some obstacles which were in the way of foreign bank activities in Iran," Tahmasb Mazaheri said on Wednesday. He was speaking during the inauguration ceremony of the Tehran branch of the Iran-Europe Commercial Bank.

Mazaheri added the Central Bank was ready to offer special incentives to open private banks in the Islamic Republic.

The Iran-Europe Commercial Bank is the first of six foreign banks which will open in Iran, said the Central Bank Secretary General Mahmoud Bahmani on the sidelines of the inauguration ceremony.

The Iranian Bank of Industry and Mine (San'at va Ma'dan) is a major shareholder of the Iran-Europe Commercial Bank. The bank has been operating on Kish Island since 2005 as the country's first foreign bank since the 1979 Islamic Revolution.