European banks pay for 114 Airbus aircraft to be purchased by Iran

Business Materials 26 January 2016 17:51 (UTC +04:00)

Tehran, Iran, January 26

By Mehdi Sepahvand -- Trend:

European banks are going to pay for 114 Airbus aircraft that Iran wants to purchase, CEO of Export Guarantee Fud of Iran Kamal Seyyed Ali said.

He further explained that Iran will then pay back the banks in installments, Mehr news agency reported January 26.

According to the official, the installments will be paid in a course of 15 to 20 years.

He further said that Italy's SACE is going to cover insurance for the European banks paying for the aircraft.

Minister Abbas Akhondi said last week that the country is in need of about 500 airplanes and is already in talks with major aircraft suppliers for purchasing aircraft within the next few years.

Akhondi further said that Iranian officials will probably finalize a deal to purchase 114 first-hand airplanes from the French-based aircraft company Airbus during the current visit by Iranian President Hassan Rouhani to France.

Italian insurance agency Servizi Assicurativi del Commercio Estero (SACE) signed short-term line of credit insurance MoUs with three Iranian banks, Parsian, Pasargad, and Saman in December.

SACE President Giovanni Castellaneta has said his company is ready to allocate insurance services worth €5 billion to Iran-Italy business deals.