Tehran, Bei­jing Strike $10 Bil­lion Fi­nance Deal

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TEHRAN - China’s CITIC Trust will ex­tend $10 bil­lion credit line for sup­port­ing projects in Iran, based on an agree­ment signed be­tween the com­pany and five Ira­nian banks at CITIC Group head­quar­ters in Bei­jing on Thurs­day.

Ex­port De­vel­op­ment Bank of Iran, Bank of In­dus­try and Mine, Par­sian Bank, Bank Pasar­gad Iran and Re­fah Bank are des­ig­nated to act as the agent banks for us­ing the Chi­nese fi­nance on wa­ter man­age­ment, en­ergy, en­vi­ron­ment and trans­port projects in Iran, the of­fi­cial news por­tal of the Ira­nian gov­ern­ment re­ported.

The Ira­nian del­e­ga­tion, headed by Vali­ol­lah Seif, the gover­nor of the Cen­tral Bank of Iran, has trav­eled to China in an at­tempt to en­hance bi­lat­eral bank­ing re­la­tions.

The Ira­nian mis­sion is sched­uled to sign a mem­o­ran­dum of un­der­stand­ing with the De­vel­op­ment Bank of China on fi­nanc­ing con­struc­tion and pro­duc­tion projects worth €15 bil­lion.

The mis­sion is also set to hold a meet­ing with China Bank­ing Reg­u­la­tory Com­mis­sion (CBRC).

Mean­while Seif said Bei­jing has re­moved ob­sta­cles to fi­nan­cial trans­ac­tions of Ira­nian traders in China, the gover­nor of the Cen­tral Bank of Iran (CBI).

“The cri­sis at the mo­ment has been re­solved, but we ex­pect the Chi­nese of­fi­cials to pro­vide Ira­ni­ans with bet­ter con­di­tions, so that they could re­sume their bank­ing ac­tiv­i­ties,” the of­fi­cial news web­site of the Ira­nian gov­ern­ment quoted him as say­ing.

Urg­ing for the ex­pan­sion of bank­ing ties be­tween the two coun­tries, he ex­pressed his dis­sat­is­fac­tion with the cur­rent level of bank­ing co­op­er­a­tion.

Seif added that bank­ing ties have a key role in broad­en­ing eco­nomic ties be­tween the two coun­tries.

Speak­ing about a re­cent fi­nan­cial agree­ment be­tween the two coun­tries, he said the 2015 nu­clear deal has paved the way for con­clud­ing fi­nan­cial agree­ments with Iran and cur­rently sev­eral Euro­pean coun­tries as well as South Korea are in­ter­ested in ce­ment­ing such ac­cords with the Is­lamic Repub­lic.

Seif said that the ini­tial plan was about con­clud­ing a $5 bil­lion agree­ment but the sides later de­cided to in­crease the amount to $8 bil­lion. How­ever, the of­fi­cials from Iran and China even­tu­ally agreed on $10 bil­lion.

“This agree­ment can pave the ground for im­ple­ment­ing mega large projects in the coun­try,” the se­nior banker said.

Later Iran’s deputy econ­omy min­is­ter said, within a 10-bil­lion-dol­lar con­tract, China has al­lo­cated Lines of Credit (LOCs) to five Ira­nian banks.

Mo­ham­mad Khaz­aei said, “The deal marks the first ma­jor con­tract signed with China in the era af­ter the Joint Com­pre­hen­sive Plan of Ac­tion (JCPOA),” stated the of­fi­cial adding “upon sign­ing this con­tract, we will be able to quickly fi­nal­ize its ex­ec­u­tive pro­ce­dures in Iran and China.”

Head of the Ira­nian In­vest­ment Or­ga­ni­za­tion added “Iran’s co­op­er­a­tion with CITIC Group is di­vided into three cat­e­gories one of the main ar­eas of co­op­er­a­tion with the large fi­nan­cial in­sti­tu­tion be­ing fi­nan­cial anal­y­sis and pro­ject fi­nanc­ing as signed by the par­ties.”

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