Economy, Business And Markets

Indian Lender Opens Credit Line for Iran

Indian Lender Opens  Credit Line for Iran
Indian Lender Opens  Credit Line for Iran

Export-Import Bank of India (Exim Bank) has agreed to shell out a new $150 million line of credit for Iran's privately owned banks.

The Iranian lenders include Saman Bank, Parsian Bank, Pasargad Bank, EN Bank and Keshavarzi Banks, IRNA reported on Tuesday.

The credit line was created by the Mumbai-based lender for the purchase of goods, engineering services and also for financing projects. The credit can be used for purchase of Indian goods only.

"This credit line can be used for purchase for steel, railway, mining or chemical fertilizer industries, which are India's strong suit," Iran's ambassador to India, Gholamreza Ansari said.

Representatives from the Central Bank of Iran, Iran’s ministry of economy and the banks mentioned in the agreement met with Exim’s CEO in New Delhi.

The negotiations for this credit line have been going on between Exim and Iranian banks during the past few months, according to Ansari.

“No limit has been defined for this cooperation,” said Ansari. The $150 million credit line from Exim, also known as Export-Import Bank of India, is the first step cooperation between Iran and India and the amount can be increased if agreed later, he added.

“We will strive to shift Iran-India relations towards infrastructural projects in IT, Mining, metals and steel sectors,” said the ambassador.

Iran can purchase 250,000 metric tons of railway tracks worth $240 million via this credit line.

Established in 1982, Exim is the premier export finance institution in India that acts as a catalyst and a key player in the promotion of cross-border trade and investment.

Commencing operations as a source of export credit, since its establishment, Exim has evolved into an institution that plays a major role in partnering with Indian industries, helping them with their globalization efforts.

The Indian lender has become a springboard for small and medium industries.

Exim helps its clients through a wide range of products and services offered at all stages of the business cycle, starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.