Hungary’s €85m Credit Line for Iran

The Hungarian Export-Import Bank has allocated an €85 million credit line to the Export Development Bank of Iran to foster economic relations between the two countries, the Hungarian foreign minister announced during a joint economic commission in Budapest. “Preliminary agreements have been made to support bilateral investments and there is no doubt that when a couple of issues are resolved, we will witness a momentum in our trade, which will be beneficial for both countries,” Peter Szijjarto was quoted as saying by Mehr News Agency.  

The joint economic commission convened for the first time in 23 years on February 2 in Budapest and was attended by Iran’s Economy Minister Ali Tayyebnia and Szijjarto, along with the CEOs and representatives of Iranian and Hungarian banks.  The event focused on enhancing banking relations between Iran and the central European country.

“In order to revive our previous economic relations, bilateral banking relations are necessary,” Tayyebnia said. The Iranian minister added that since Hungary has an advantageous geographical location, Iran will use the country as a conduit to increase its economic ties with Europe. 

While Iran has succeeded in greatly improving its relations with Europe, major banks are still held back by the fear of US primary sanctions that cost them heavy penalties after western sanctions targeted Iran’s nuclear program.