CBI Governor: Foreign banks to open €22bln line of credit for Iran

FNA- Governor of the Central Bank of Iran Valiollah Seif announced that foreign banks will allocate a multi-billion-dollar credit line for Iran to implement its projects in different fields.

“A sum of 22 billion euros will be considered for Iran to boom its economy,” Seif said.

The CBI governor noted that Austria, Denmark, Italy and some other countries will open lines of credit for Iran in coming weeks.

He recalled that a separate eight-billion-euro LOC has been recently signed with South Korea indicating that the measure would lead to further investment and a rise in production and employment.

CBI governor also stressed the need to follow up compliance of Iran’s economic activities with international standards referring to adequate international banking ties as a necessary prerequisite to the process.

In relevant remarks earlier on Tuesday, Deputy Economy Minister Mohammad Khazayee said that foreign investors are likely to make huge investments in Iran’s development projects.

“A sum of $29-30 billion will be invested in Iran in the near future,” Khazayee said on Tuesday, addressing the Islamic Banking Conference in Tehran.

The Iranian deputy economy minister said that the country has allocated 30 billion dollars for its economic growth.

“The negotiations leading to these contracts have been underway for a long time and the Central Bank of Iran has been meticulous about every single word mentioned in the contracts,” Khazayee said.

The Iranian deputy economy minister also maintained that the 8-billion-dollar contract with Exim Bank of South Korea has already been signed.

“However signing these contracts doesn’t mean that our country will be in debt, but the country has signed a line of credit agreement with the Exim Bank of South Korea, an Austrian bank and the national banks of Italy,” he said.

In a relevant development in early August, Chairman of the French-Iranian Trade Promotion Center (CPCFI) Mohsen Rashidi announced that a large number of French companies have shown interest in investment in Iran’s economic development projects.

“French companies are eagerly looking for investment opportunities in the Iranian market, as the country today is in a position that can choose from amongst an array of trade offers,” Rashidi said.

He reiterated that since the implementation of the nuclear agreement between Iran and the major world powers, known as the Joint Comprehensive Plan of Action (JCPOA), numerous French enterprises visited Iran.

“Under such circumstances, it is possible for Iran to establish effective relations with the world and take advantage of the available grounds to fully expand ties in every sector,” Rashidi added.

“Before the nuclear deal, the French businessmen used to prefer Qatar to Iran,” the chairman of the French-Iranian Trade Promotion Center added.

Iran and the six world powers (the US, Russia, China, France, Britain and Germany) signed the nuclear agreement in Vienna in July 2015, under which Iran accepted to curb its nuclear program in return for lifting the related sanctions.