News Column

Seif due to China to reopen China finance for Iranian projects

July 27, 2014



TEHRAN, July 27 (MNA) Valiollah Seif, Central Bank Governor, to lead a delegation to China to discuss reopening of Chinese financing of Iranian projects. Iranian Central Bank chief is scheduled to go to China to discuss removing suspension of Chinese financing of Iranian projects in return for 18bn China's debt to Iran. Seif will 'talk with Chinese Central Bank and minister of economy the fate of the financing of projects inside Iran by China,' and speculated that currently, 80 well-planned projects would be financed by proper parties including China. "Iran's agreements with China in energy sector mandates that Iran should receive money back from China in cash and other portion of it in goods imported; since Iran has not noticed any goods worthy of import, Iran and China agreed that China would return the money back as financing projects inside Iran as twice the original debt," Head of Iran-China Joint Chamber of Commerce Assadollah Asgarowladi said. "Since China was indebted to Iran$22bn, China would allocate $44bn as financing Iranian projects; furthermore, Iran'sCentral Bank should provide 15 to 20 percent of the figure in Rial," Asgarowladi added. Asgarowladi believed the financing, if realized, would improve Iran's current trade balance with China to about $50bn, with a 10-percent growth. He said that most of the projects belonged to industries and oil sectors. "However, projects include construction of roads, power plants, highways, refineries, harbors, and airports," he said. SH/HRGH MNA END


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Source: Mehr News Agency (Iran)


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