The Majlis on Tuesday allowed the government to take a $5- billion loan from Russia for development projects.
The money is set to be used for completing development projects namely infrastructure and production units in the renewable energy, nuclear power, power generation, railroads, highways and water networks, ISNA reported.
The Central Bank of Iran, Ministry of Economy and the Plan and Budget Organization will propose the format for using the funds to the government.
Lawmakers also approved a new cap for the use of foreign funds by the public and private sectors in the next fiscal year. Total loans from foreign sources should not exceed €30 billion, the parliamentary ruling said.
MPs also approved a measure allowing the government to access €2 billion in grants from international organizations to implement plans against natural disasters such as floods and earthquakes.
The Economy Ministry and PBO will present the legislative branch with regular reports on how the overseas grants are being used.
The latest funding measures were approved as a part of the 2022-23 budget. The budget bill was finalized and President Ebrahim Raisi sent it to the parliament in December.
Last month the chamber approved the outlines of the budget bill.
Decline in Foreign Debt
Iran’s foreign debt was $8.83 billion by end of the third quarter of the current fiscal year to Dec. 21.
According to Central Bank of Iran data, the debt was $518 million or 5.5% lower compared to the corresponding quarter last year.
Tehran has been unable borrow on international markets while the 2018 US sanctions, cumbersome laws and economic uncertainty have kept foreign investors away.
Most of the foreign loans in the past two years was for fighting the coronavirus pandemic. Tehran received $50 million from the World Bank to help the health sector cope with the fatal disease.
The OPEC Fund for International Development gave $500,000 in emergency grants to buy equipment to help fight the plague.
Recently, the Organization for Investment, Economic and Technical Assistance of Iran said the World Bank has agreed to pay $90 million to assist cope with the spreading coronavirus.
