Economy, Business And Markets

Tejarat Bank, Chexim Sign Coop. Agreement

Tejarat Bank, Chexim Sign Coop. Agreement
Tejarat Bank, Chexim Sign Coop. Agreement

Iran’s Tejarat Bank and Export-Import Bank of China (Chexim) have signed an agreement to cooperate on financing projects and opening letters of credit.

Under the agreement, the Chinese bank will finance two major petrochemical and telecom projects. The terms of the agreement, however, might be extended to include schemes in auto and energy sectors, according to Tejarat Bank’s official website.

The two banks will also issue guarantees for Iran and China’s joint projects in third countries and provide industries with short-term finances for buying equipment, technology and raw material.

Ali Mehrpour, the head of Tejarat Bank’s Department for International Affairs, referred to the two banks’ cooperation in financing Tehran’s subway in the past and said, “Exim Bank of China is keen on enhancing relations with us, since Tejarat has met all its commitments in previous projects.”

Earlier in 2012, Tejarat Bank had financed the construction of Tehran subway by opening a credit line worth 5.36 billion yuan.

Exim Bank of China’s representative also welcomed the agreement and hoped for expanding bilateral banking relations to cover more industries in the post-sanctions era.

Founded in 1994, the Export-Import Bank of China is a lender solely owned by the Chinese government operating under the direct leadership of the State Council of the People’s Republic of China. Its international credit ratings are the same as China’s sovereign ratings. It has established correspondent banking relationship with more than 1,000 banks.

Established in 1979, Tejarat is the sixth largest commercial bank in Iran. The private lender has six international branches in Paris, London, Hamburg, Beijing, Dushanbe and Dubai.

Imports from China during the 11 Iranian months ending Feb. 19 stood at $9.3 billion, according to the deputy head of Trade Promotion Organization of Iran.