Iran’s Economy Minister in S. Korea to boost banking ties

IRNA – Iran’s Economy Minister is visiting South Korea to consult expansion of banking relations and line of credit (LOC) between the two countries.

After implementation of the landmark nuclear agreement between Iran and major world powers known as Joint Comprehensive Plan of Action (JCPOA), a strategic foreign finance committee was formed in Iran’s Ministry of Economy, consisting of representatives of Central Bank and Plan and Budget Organization, to accelerate and facilitate foreign lines of credit.

South Korea is one of the target countries of the committee for foreign lines of credit and financial services. As a result of preliminary talks, two South Korean banks are expected to finance Iran projects 13 billion euros.

Ali Tayyebnia who is visiting South Korea to take part in the annual conference of the Asia Infrastructure Investment Bank (AIIB), has held talks with Minister of Strategy and Finance Yoo Il-Ho.

In the meeting, lines of credit between the two countries’ banks, brokerage deals and opening branches of Iranian banks in the south Asian country were discussed.

Talks with South Korean banks for creating lines of credit are in the final stage, but some other issues require agreements between the ministers of the two countries.

Facilitation of changing currency in oil deals was another topic of the talks between Tayyebnia and his Korean counterpart.

Iran-South Korea trade and financial exchanges entered a new phase last year after the latter’s former president visited Iran in May and an agreement was signed on using euro in their transactions.

The Korean delegation in Tehran also expressed preparedness to provide Iran’s projects with line of credit, the preliminary talks of which are currently underway.

AIIB is an international financial institute which was launched as China’s initiative and Iran is one of its shareholders.

The main goal of the bank was defined as crediting countries along the Silk Road and boosting development of infrastructures in Asia.

Iran became a member of the institution in Novemebr and currently with a share of 1.61 percent of its total shares, is ranked as the eleventh big shareholder.