The media in Tehran said on Thursday that this has been envisaged as per an agreement that Chinas EXIM bank has signed with Irans Bank Tejarat to jointly fund Iranian projects.
Bank Tejarat has reportedly announced in a statement that the next segments that could benefit from the scheme are the automobile industry as well as the energy sector.
Providing financial guarantees for projects that are to be carried out by Iranian and Chinese companies or those from a third country has also been envisaged in the deal between the two banks.
Bank Tejarat has further emphasized that Chinas EXIM bank is even set to provide insurance coverage for Irans import and export activities.
Chinas EXIM bank in January signed a basic agreement with Irans Ministry of Road and Urban Development based on which it would fund the construction of a high-speed trains service between Irans capital Tehran and Mashhad in the northeastern province of Khorasan Razavi.
The agreement to provide a fund of around $4 billion was signed during a landmark visit to Iran by Chinas President Xi Jinping.
China reportedly owes Iran over $20 billion in outstanding oil payments. The cash has been frozen in overseas banks after the US-led sanctions made it difficult for Beijing to transfer money to Tehran.
The two countries have reportedly reached a deal to settle some parts of the frozen money through Chinas funding of Iranian petrochemical projects. It is not clear if the scheme that Chinas EXIM bank has devised with Irans Bank Tejarat addresses is part of this deal.
By Press TV
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