12 Banks in Iran-Korea €8-bn Finance Contract

The Managing Director of the Export Development Bank of Iran (EDBI) has said that 12 banks are “agent banks” in the €8-billion Iran-South Korea finance contract.

According to the contract signed with the efforts of the Ministry of Economy, the Central Bank, the Organization of Investment, Economic and Technical Assistance of Iran (OIETAI), and 12 Iranian banks, the South Korean Exim Bank will finance various projects in our country in the fields of development and production through Iranian agent banks, Ali Saleh Abadi said.

Within the framework of this contract, the maximum construction period of each project is 5 years and the maximum repayment period for each project is 10 years after the end of the construction period.

This finance contract was signed between 12 Iranian banks, including the Export Development Bank of Iran, and the South Korean Exim Bank, the Managing Director of the Export Development Bank of Iran added.

The biggest loan agreement worth more than 8 billion euros was signed last week in Seoul with the presence of Mohammad Khazaei, Head of the Organization of Investment, Economic and Technical Assistance of Iran (OIETAI), and Chong, Executive Director of the South Korean Exim Bank.

The government and private sectors of Iran can use this loan within the framework of existing regulations. 12 Iranian banks will use this loan as agent banks.

The Executive Director of South Korea’s Exim Bank said the contract is an important step in developing economic relations between the two countries based on providing common interests and added: Several projects can benefit from this line of credit with the approval of the Central Bank and OIETAI.

Several projects, particularly in the areas of health, transport and energy, have already been negotiated and ready to be introduced to Korea.

Earlier, a $1.7 billion loan agreement was signed with the Chinese Exim Bank to boost Tehran-Mashhad Electric Railway, and a €2.2 billion contract was signed with Russia for the energy and transportation sectors.

(Source: Ministry of Foreign Affairs)

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