Iranian Banks Finalize Finance Deal with Russia Eximbank
Months after the Central Bank of Iran clinched an agreement with the Export Insurance Agency of Russia to pave the way for Russian banks to fund Iranian projects, four Iranian banks have signed an "unlimited finance deal" with the Eximbank of Russia.
Bank Sepah, the Export Development Bank of Iran, Parsian Bank and Bank Pasargad have signed a deal based on which the Russian Exim-bank will provide funds "without a ceiling" to the four lenders to finance development projects in Iran, according to a report published by the CBI on Tuesday.
In mid-October, CBI's deputy for foreign exchange affairs Ahmad Araqchi had signed the finance agreement with Alexey Tyupanov, chairman of the Management Board and CEO of the Russian export credit–aka Exiar– during the Russian officials' visit to Tehran.
Based on the recent agreement signed in Moscow, Iran's public and private sector's approved projects will be able to benefit from the loans, while Russian exporters can use them to export technical and engineering services to Iran.
The agreement has been signed in line with implementing commitments set as part of the Sixth Five-Year Development Plan (2017-22) and the annual budget law and as a result of years-long efforts by the government, the Ministry of Economic Affairs and Finance and the central bank to attract foreign finance from various nations.
Ali Salehabadi, EDBI's chief executive told IBENA that the contract would be implanted based on mutual consent and that the duration for each development project has been set at 3-5 years with a repayment extending 10 years.
The efforts are aimed at "diversifying the existing credit lines in order to implement construction and manufacturing projects," the statement by CBI reads.
After China, India, South Korea, Denmark and Austria in recent months, Russia has now become the sixth nation to finalize a foreign finance deal with Iran based on which billions of dollars worth of foreign funds have found their way for projects badly in need of cash.
"As a result of these deals, executive entities and the private sector will be able to employ lines of credit allocated by various countries in order to finance their projects," the central bank notes.
CBI further gives credit to the Ministry of Foreign Affairs and the Iranian embassy in Moscow for the finalization of the deal.
In conclusion, it announces that "negotiations by the banking system and the government are still ongoing to secure more finance from other countries, the news of which will be announced."
source: Financial Tribune
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
