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