China signs deal to pro­vide Iran with $10b in loans

Iran Daily - - Domestic Economy -

China signed an agree­ment with Iran to pro­vide a credit line of $10 bil­lion for its in­fra­struc­ture projects – what is seen as the big­gest eco­nomic deal be­tween the two coun­tries af­ter the re­moval of sanc­tions against the Is­lamic Repub­lic in 2016.

The agree­ment was signed be­tween China’s CITIC Group Cor­po­ra­tion and a con­sor­tium of Ira­nian banks that in­cluded Bank of In­dus­try and Mine, Re­fah Bank, Par­sian Bank, Bank Pasar­gad and Ex­port De­vel­op­ment Bank of Iran, Press TV re­ported.

Based on it, CITIC will pro­vide loans to the Ira­nian banks to fund projects in ar­eas such as en­ergy, nat­u­ral en­vi­ron­ment, trans­porta­tion and the man­age­ment of wa­ter re­sources.

Vali­ol­lah Seif, the Gover­nor of the Cen­tral Bank of Iran (CBI) who over­saw the sign­ing of the agree­ment, said that the Ira­nian banks could start re­ceiv­ing loans from CITIC as early as Oc­to­ber.

Seif em­pha­sized that the CBI had shown “ex­ten­sive flex­i­bil­i­ties” to­ward CITIC in seal­ing the agree­ment. He added that this was based on the bank’s his­tory of pos­i­tive co­op­er­a­tion with the Is­lamic Repub­lic with­out elab­o­rat­ing what those flex­i­bil­i­ties con­sti­tuted.

The Bei­jing-based CITIC Group Cor­po­ra­tion, formerly the China In­ter­na­tional Trust and In­vest­ment Cor­po­ra­tion, is a state-owned in­vest­ment com­pany es­tab­lished in 1979.

It now owns 44 sub­sidiaries, in­clud­ing China CITIC Bank, CITIC Hold­ing, CITIC Trust Co. and CITIC Mer­chant Co. Ltd. in China, Hong Kong, the United States, Canada, Aus­tralia and New Zealand.


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