Bank Sepah, the Export Development Bank of Iran, Parsian Bank and Bank Pasargad have signed a deal based on which the Russian Exim-bank will provide funds "without a ceiling" to the four lenders to finance development projects in Iran, according to a report published by the CBI on Tuesday.
In mid-October, CBI's deputy for foreign exchange affairs Ahmad Araqchi had signed the finance agreement with Alexey Tyupanov, chairman of the Management Board and CEO of the Russian export credit–aka Exiar– during the Russian officials' visit to Tehran.
Based on the recent agreement signed in Moscow, Iran's public and private sector's approved projects will be able to benefit from the loans, while Russian exporters can use them to export technical and engineering services to Iran.
The agreement has been signed in line with implementing commitments set as part of the Sixth Five-Year Development Plan (2017-22) and the annual budget law and as a result of years-long efforts by the government, the Ministry of Economic Affairs and Finance and the central bank to attract foreign finance from various nations.
Ali Salehabadi, EDBI's chief executive told IBENA that the contract would be implanted based on mutual consent and that the duration for each development project has been set at 3-5 years with a repayment extending 10 years.
The efforts are aimed at "diversifying the existing credit lines in order to implement construction and manufacturing projects," the statement by CBI reads.
After China, India, South Korea, Denmark and Austria in recent months, Russia has now become the sixth nation to finalize a foreign finance deal with Iran based on which billions of dollars worth of foreign funds have found their way for projects badly in need of cash.
"As a result of these deals, executive entities and the private sector will be able to employ lines of credit allocated by various countries in order to finance their projects," the central bank notes.
CBI further gives credit to the Ministry of Foreign Affairs and the Iranian embassy in Moscow for the finalization of the deal.
In conclusion, it announces that "negotiations by the banking system and the government are still ongoing to secure more finance from other countries, the news of which will be announced."