Bei­jing, Tehran sign $15b deals on in­fra­struc­ture, pro­duc­tion projects

Iran Daily - - Domestic Economy -

China De­vel­op­ment Bank signed pre­lim­i­nary deals with Iran worth $15 bil­lion for in­fra­struc­ture and pro­duc­tion projects, an­nounced Gover­nor of Cen­tral Bank of Iran Vali­ol­lah Seif.

The con­tracts re­flect “a strong will for con­tin­u­a­tion of co­op­er­a­tion be­tween the two coun­tries”, Seif was quoted as say­ing by AFP.

The credit line will use eu­ros and yuan to help by­pass US sanc­tions that have con­tin­ued de­spite the nu­clear deal be­tween Iran and world pow­ers in 2015.

Seif added that of­fi­cials from Exim Bank of China will travel to Iran in com­ing days to fi­nal­ize a $10-bil­lion let­ter of credit.

China was a sig­na­tory to the deal that lifted sanc­tions in ex­change for curbs to Iran’s nu­clear pro­gram.

Pres­i­dent Xi Jin­ping vis­ited Iran a week af­ter it came into ef­fect, vow­ing to boost bi­lat­eral trade to $600 bil­lion within a decade.

China is al­ready Iran’s big­gest oil cus­tomer and ac­counts for a third of its over­all trade.

Since the lift­ing of sanc­tions, Bei­jing has opened two credit lines worth $4.2 bil­lion to build high-speed rail­way lines link­ing Tehran with Mash­had and Is­fa­han.

The lat­est move fol­lows an eight-bil­lion-euro credit deal signed with South Korea’s Exim bank last month.

Euro­pean banks re­main wary of penal­ties from Washington for work­ing with Iran, but talks are said to be at an ad­vanced stage for $22 bil­lion in credit deals with banks from Aus­tria, Den­mark and Ger­many.

China’s new $10 bil­lion credit line will go to Iran’s Re­fah Kar­garan, San’at va Ma’dan, Par­sian, Pasar­gad and Tose’e Saderat banks.

IRAN DAILY

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