Russia to loan Iran $7bn

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Translated by Ollie Richardson for Fort Russ
12th November, 2015

Lenta

Reuters

Iran will receive from Russia a loan of $7 billion. This was stated by Mojtaba Khosrowtaj, first Deputy Minister of industry, mines and trade of the Islamic Republic of Iran, reports RIA Novosti. $5 billion will be allocated to the government  from the Federal budget, and another $ 2 billion will be given in addition.

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“Today, the international cooperation of credit and financial schemes plays a key role in the implementation of various projects — international and national. So we raised this issue with our friends in Russia and we came to the conclusion that such schemes would be very useful,” said Mojtaba Khosrowtaj.

He explained that currently the two governments are working on two options for financing projects. Money can be allocated either under the guarantees of the Iranian state or under the guarantees of banks. In addition, the Iranian representative stated that his country is excited for the launch of this kind of loan scheme. “In a competitive market, a competitive world, if a country spends a long time postponing [projects], then other countries will come and take their place,” said Mojtaba Khosrowtaj.

Earlier, Minister of energy of Russia Alexander Novak said that Iran has applied to the Russian side for the credit in 5 billion dollars for infrastructure projects in Iran. “We are talking about cooperation between the two countries in the field of electricity and the development of railway transport”, he said.

On the 20th of October it became known about the decision of the Russian government to issue a loan of 1.2 billion dollars to Cuba. The money will be spent on construction of power units on the TPP “Maximo Gomez”. In addition, Prime Minister Dmitry Medvedev signed a decree on the assistance to Cuba in financing the modernisation and expansion of the metallurgical plant “Antillana de Acero Jose Marti”. Assistance will take the form of export credit of 100 million dollars.

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