Iran Signs $10 billion Finance Deals with China
Iran and China sign $10 billion finance deal: Five Iranian banks have jointly signed a finance deal worth $10 billion with a Chinese state-owned investment company (CITIC Trust) to fund development projects in Iran.
The CEOs of the Export Development Bank of Iran, Bank of Industry and Mine, Bank Refah, Bank Parsian and Bank Pasargad–a cohort of private and public sector banks–were part of a delegation headed by Central Bank of Iran Governor Valiollah Seif on his landmark visit to Beijing on Thursday.
The five lenders are agent entities through which Chinese funds will be spent on water management, energy, environment and transport projects.
“The construction and repayment periods of 10 to 12 years will be set in proportion to the size of each project,” CBI’s official news website reported.
The Chinese deal comes on the heels of another watershed contract finalized last month between Iran and South Korea, which secured €8 billion worth of credits for various Iranian projects.
During his stay, Seif also signed a memorandum of understanding with the Development Bank of China on financing construction and manufacturing projects worth €15 billion.
According to CBI, in addition to setting a framework of cooperation between the two nation’s banks, the MoU will be a “basis for long-term relations with the Development Bank of China on technical, operational and educational fronts”.
The CBI chief is to discuss expansion of correspondent banking relations and other related topics on payment and transaction of funds between Iranian lenders and their Chinese counterparts.
The head of the Organization for Investment, Economic and Technical Assistance of Iran Mohammad Khazaei also accompanied Seif on the trip.
The Iranian delegate is also scheduled to meet and negotiate with officials at the China Banking Regulatory Commission with the aim of developing banking relations. Banking problems faced by Iranian companies and businessmen will be one of the topics of discussion.
Established in 2003 to respond to the supervisory needs of the Chinese banking system, CBRC is the country’s independent banking regulator based in Beijing.
At the ceremony for signing the $10 billion finance deal, Seif said the deal will strengthen the historical and now strategic relationship between Iran and the Asian superpower.
CITIC Trust Chairman Chen Yisong said Iran-China political ties are rising favorably and the deal has been clinched with guidance from the leaders of both nations.
“We are witnessing a significant event today and I hope that this deal will pave the way for the development of both countries,” he declared