China gives $10B credit line to Iran

A Chinese state-owned investment firm has provided a $10 billion credit line for Iranian banks, Iran’s central bank president said on Saturday.

The contract was signed in Beijing between China’s CITIC investment group and a delegation of Iranian banks led by central bank president Valiollah Seif. The Iran Daily said the funds would finance water, energy and transport projects. Iran is vital to China’s trade ambitions as it develops its trillion-dollar “One Belt, One Road” strategy aimed at dramatically boosting its ties to Europe and Africa. In addition to the credit line, the Export-Import Bank of China committed to a further $10 billion in loans, while China Development Bank signed preliminary deals with Iran for $15 billion in projects.