EghtesadOnline: The National Development Fund of Iran, the country’s sovereign wealth fund, has signed a contract with the Export Development Bank of Iran to augment development projects worth $230 million.
The loans will help fund development projects, including oil and gas, petrochemicals and renovation of the commercial transportation fleet.
Interest on the loans has been set at 6% for oil, gas and petrochemical projects and 3.5% for water and agricultural projects.
Projects eligible for the loans are those that are capable of reimbursing the principal plus interest in foreign currency, Financial Tribune reported.
The Oil Ministry is obliged to guarantee settlement of the principal and interest allocated for auto production projects in the framework of transport fleet rehab.
There will be no limitation on investing in projects located in the free trade zones.
EDBI has been tasked with contributing to the development of non-oil exports by allocating cheap loans and other resources as outlined in the Sixth Five-Year Economic Development Plan (2017-22).