Economy, Business And Markets

EDBI Getting Ready To Resume Int’l Role

EDBI Getting Ready  To Resume Int’l RoleEDBI Getting Ready  To Resume Int’l Role

The Export Development Bank of Iran is preparing to return to international markets and help improve the Iranian market for attracting foreign investment after the lifting of sanctions.

The EDBI managing director said Sunday his bank will recover its assets frozen in foreign banks under the nuclear deal signed between Iran and the six world powers and soon after start “offering international banking services


Ali Salehabadi noted that lifting the extended restrictions impose on Tehran because of the nuclear energy program will create vast opportunities for the lethargic banking sector. “Cooperation with international brokerages will enable Iranian banks to open accounts in foreign banks.”

Normal relations between Iran and the West can and will normalize banking collaboration and reduce money transfer charges, IRNA quoted him as saying. “Besides, currency swap agreements also would expand international trade.”

Salehabadi noted that “Exporting engineering and technical services is one source of hard currency revenues,” and said the EDBI is able to support and “collateralize” Iranian companies.

Banking regulations in Europe have gone through a sea change, making it essential for the EDBI to upgrade its rules. A group of Iranians “would travel to Europe” for relevant training, he told the state news agency.

Projects Underway

The National Development Fund of Iran is financing projects in key sectors such as steel and petrochemicals; however, once sanctions are lifted foreign banks would be able to invest in the Iranian projects.

Ali Salehabadi elaborated on financing the Bushehr Petrochemical Project and said “A foreign bank is funding the project for up to €2.2 billion and the credit line is secured jointly by EDBI and Industry and Mining Bank.”

Shahid Beheshti Dock in Chabahar and Gachsaran Petrochemical project are both financed by the NDFI through the EDBI.

Shahid Beheshti Dock will receive $334 million to help boost handling capacity from the present 2.5 million tons to 8.5 million tons.

NDFI had earlier announced that it was planning to deposit $1 billion with the top commercial lender to augment the export industry that is expected to expand significantly in the coming months due to the governments’ insistence to increase non-oil exports as crude oil prices plunge to new lows and threaten the single-product economy.

EDBI is a specialized government-owned bank which provides financial services to exporters and investors.

The bank, however, was pushed out of its foreign business after the imposition of international sanctions led to the isolation of Iranian banks from the global interbank service, SWIFT.

Following the easing of sanctions, foreign investors are willing to return to the country and Iranian businesses are getting ready for normal relations with the outside world.