61905
Iran faced a severe lack of foreign investment prior to the nuclear accord.
Iran faced a severe lack of foreign investment prior to the nuclear accord.

Iran Expecting $50b in Foreign Finance

The Economy Ministry entered into negotiations with more than 15 ECAs and banks, and as of March 2, negotiations have been held with various countries for approximately $50 billion of foreign investment in the form of finance

Iran Expecting $50b in Foreign Finance

After the implementation of Iran's nuclear accord with world powers, the country has negotiated its way to attract $50 billion worth of foreign finance expected to flow into the country soon, a report by Economy Ministry's Organization for Investment, Economic and Technical Assistance of Iran has revealed.
According to the report, countries that have shown interest in Iran's investment potentials include South Korea, China, Japan, Denmark, Germany, Austria, Italy, Norway, Russia and Brazil.  
"To foster foreign investment and develop ties with international banks and export credit agencies, the Ministry of Economic Affairs and Finance has put security of investment and stability in economic, political and legal affairs on top of its agenda," the report published by the official news service Shada reads.
In line with this, the Economy Ministry "entered into negotiations with more than 15 ECAs and banks, and as of March 2, negotiations have been held with various countries for approximately $50 billion of foreign investment in the form of finance".
Noting that a credit line from Russia worth more than €2 billion has been secured, the report says it is expected that the rest of the negotiations would bear fruit during the current fiscal year that began March 21.
Last year it was announced that German and Chinese banks provided €400 million in loan to finance deals between Iran and Siemens to jointly manufacture wagons and locomotives in the Islamic Republic. Siemens said it would supply components for 50 diesel-electric locomotives to Iran’s MAPNA Group.
As the report outlines, Iran faced a severe lack of foreign investment prior to the nuclear accord "because the bad management and reactionary policies of the previous government in economic, cultural, social and political areas, and lack of expertise on the part of their diplomatic team led to many countries ceasing their cooperation with Iran".
This period marked a total isolation from foreign banks and institutions, and a subsequent disruption of foreign finance meant that many construction projects were left incomplete, prompting pundits to call it "the economic winter of Iran".
This period brought about a hefty rise in inflation rate, an increase in unemployment, inability to create new jobs and a lack of finance to support big projects, the OIETAI adds.
But with recent developments, a fresh flow of finance will gradually reenter the Iranian economy and have many benefits, including "maintaining the administration's management role and eliminating investment risk".  

A Shot in the Arm

A senior official with OIETAI also commented on the report, pointing out the many boons of such negotiations for foreign finance.
"Because the financial resources of the government and banks cannot address the need for financing various projects and this lack of resources currently exists in the country, this type of foreign finance will prove useful both for the public and the private sectors," Saeed Khani Oshani said.
He also noted that this measure will strengthen Iran's exports and tend to "one of the biggest problems of our country", namely unemployment, by kick-starting productive projects.
The official had earlier pointed to Iran's membership in the Asian Infrastructure Investment Bank, a China-led international financial institution, which aims to support infrastructure development in the Asia-Pacific region.
According to Oshani, representatives from AIIB had visited four Iranian provinces, following which the Ministry of Economy was able to approve about $600 million worth of funds for water and wastewater projects in the provinces of Gilan, Khorasan Razavi and Kermanshah.

Short URL : https://goo.gl/0DaPwV
  1. https://goo.gl/huvWsY
  • https://goo.gl/5k6Fzw
  • https://goo.gl/2XnZ32
  • https://goo.gl/PZdKc0
  • https://goo.gl/5dwcYd

You can also read ...

Ottawa to Finance Iran's Bombardier Order
Canada will provide $100 million in finance for a deal between...
Munich Re Signs 1st Post-Sanctions Deal With Iran
Iran's Saman Insurance has signed a contract with the world's...
Euro Up,  USD Down
The two high demand currencies in Tehran’s market, namely the US...
Iran-Pakistan $5b Trade Target Optimistic
Pakistan is serious about its preferential and free trade...
Iranian steel exports, especially HRC shipments, grew nearly eightfold between 2013 and 2016 to just over 1 million tons annually, placing Iran third behind India (1.9 million tons) and China (5.7 million tons).
The European Commission has decided that Iran’s exports of hot-...
Iranian Company Launches E-Learning App
A knowledge-based startup Raya Pardazesh Hooshmand Amirkabir has...
Industries and mines received 87% of their credits as working capital.
The Iranian banking system paid out 1.01 quadrillion rials ($27...
Iran's Airport Traffic Up 6%
Iran Airports Company registered 121,688 takeoffs and landings...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus