Iran provides tens of billions of dollars for development projects

Business Materials 20 October 2013 16:14 (UTC +04:00)

Azerbaijan, Baku, Oct.20 / Trend F.Karimov /

Iran has provided a source of finance, worth tens of billions of dollars, for development projects, the Mehr News Agency quoted Iranian Chamber of Commerce chairman Mohammad Nahavandian as saying.

He added that details about the issue will be announced in the near future.

The Central Bank of Iran has been authorized to issue around 392 trillion rials (about $15.5 billion based on the US dollar official exchange rate of 24,900 rials) in bonds to finance the development plans in the current Iranian calendar year which began on March 21, the Fars News Agency reported in June.

According to the current year's national budget law, some 150 trillion rials should be invested in the development of joint oil and gas fields, the establishment of water and wastewater treatment plants and power stations in underdeveloped regions.

The ministries of energy, oil, roads and urban development, defence, telecommunications and information technology, industry and trade and agriculture were allowed to issue the bonds.

In July 2012, Oil Ministry official Mohsen Khojasteh-Mehr said that the Central Bank of Iran had opened a $10 billion line of credit for a number of national oil projects in the upstream sector.

The national oil projects have a number of financial sources, such as access to 18 per cent of the assets of the National Development Fund and the funds acquired through the issuance of $10 billion in foreign currency bonds, the issuance of 15 trillion rials in other bonds and the sale of $10 billion worth of shares and properties belonging to the Oil Ministry, Khojasteh-Mehr told the Shana News Agency.