Economy, Business And Markets

$10b Italian Credit for Exports to Iran

$10b Italian Credit for Exports to Iran$10b Italian Credit for Exports to Iran

Italy announced 8.8 billion euros ($10.05 billion) in credit and financial guarantees to re-launch exports to Iran, the Italian export agency said on Tuesday.

Italy’s state-run lender Cassa Depositi e Prestiti will offer credit lines of 4 billion euros to companies building oil and gas infrastructure, while export agency SACE will guarantee loans and offer trade financing of 4.8 billion euros, a SACE statement said.

Earlier on January, in the presence of the President Hassan Rouhani, and Italian Premier Matteo Renzi, SACE and the Central Bank of Iran signed a settlement agreement for the recovery of the sovereign credit due to SACE by Iranian counterparties, Reuters reported.

The agreement provides for the payment to SACE of €564 million in three installments by 15 October 2016. The credit represents claims paid by SACE to Italian companies for loans unpaid by Iranian counterparties following curbs on the payment systems imposed by international sanctions.