China extends $10 bln in credit to Iran

Chinese investment group CITIC has provided Iranian financial institutions with a new line of credit totalling USD 10 billion, Iran’s central bank announced on Saturday.

The funds are intended to be directed towards energy, water and transportation projects in Iran.

A delegation led by Valiollah Seif, president of the Central Bank of Iran, signed the deal with CITIC in Beijing.

The China Development Bank and Iranian officials also inked preliminary deals totalling USD 15 billion for additional infrastructure and production projects, Seif said.

Iran is a key target of investment for China’s One Belt, One Road economic and trade development scheme.

Five Iranian banks will participate in the new line of credit, including Pasargad, Refah Kargaran, San’at va Ma’dan, Parsian and Tose’e Saderat.

Pasargad Bank is heavily involved in energy investments in Iran, and its assets include Pasargad Energy Development Company, a major player in oil and gas, refineries and petrochemical, power generation and trading.