WORLD Russian bank to fund Iranian development projects


Russian bank to fund Iranian development projects


09:29, January 01, 2018


Iran will use funds from Russia's Eximbank to implement several infrastructure projects, local media reported on Sunday.

The Financial Tribune reported that The Central Bank of Iran and the Export Insurance Agency of Russia signed a deal recently to pave the way for Russian banks to fund Iranian projects.

Four Iranian banks, including Bank Sepah, the Export Development Bank of Iran, Parsian Bank and Bank Pasargad, signed an "unlimited finance deal" with Eximbank last week, the report said.

Under the deal, Eximbank will provide loans "without a ceiling" to the four lenders to finance development projects in Iran.

But it is not yet known which projects will be eligible to get the funds, said Deputy Economy Minister Mohammad Khaza, also director of the Organization for Investment, Economic and Technical Assistance of Iran.

"Several projects have already applied for the funds, but their applications need to be assessed in the Central Bank of Iran and the Economy Ministry. In case of approval, they will be introduced to Russia's Eximbank for undergoing the final stage," Khaza said.

This is the first interbank loan from Russia to Iran and "will be an effective step toward expansion of the economic ties between the two countries," he added.

Based on the agreement, Russian exporters can also use the loans to export technical and engineering services to Iran.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue