South Korea Credit Line Offers Relief For Iran’s Ailing Economy

Iran has bagged agreements for credit facilities totaling $9bn $8bn from S Korea and $1bn from Austria providing a boost to its beleaguered banking sector.

Despite the lifting of international sanctions in January 2016, Iran is still struggling to raise project financing and reintegrate with the international banking system.

Iran announced this week that following negotiations in Seoul between Iran’s Minister of Economic Affairs and Finance Ali Tayyebnia and Korea’s Kexim Bank, an agreement was reached on the opening of an $8bn line of credit to finance Iranian infrastructure projects in energy and health sectors, discussion of which began a year ago.

South Korea is making a big push to capitalize on the planned opening of Iran’s economy. It has scooped up more than $15bn in provisional downstream contracts (MEES, 17 March) and has two firms prequalified for upstream tenders (see p15). It has now reeled off three straight quarters of record Iranian crude imports, although this looks set to end in Q2. (CONTINUED - 1065 WORDS)