Baku, Azerbaijan, June 20
By Fatih Karimov – Trend:
Talks are underway with Japanese and South Korean investors to allocate letters of credit (LC) for Iran’s petrochemical project, Managing Director of Iran International Petrochemical Company Isa Mashayekhi, said.
The Iranian company is talking with two Japanese and South Korean firms on providing the credit worth 520 million euros in short term, Mashayekhi said, without unveiling the names of the foreign counterparts, SHANA news agency reported June 18.
The usance letter of credit is a LC payable at a determined future date after presentation of conforming documents.
South Korea will provide $13 billion euro to finance the infrastructure projects in Iran, he said, adding Japan also is expected to allocate 10 billion euro.
Iran’s petrochemical output capacity currently stands at 61 million tons. The Islamic Republic hopes to bring this capacity to 120 million tons by 2020 and 180 million tons by 2025.
Petrochemical plants in Iran had to work below the actual production capacity due to the shortage of natural gas as feedstock, old production units, and the sanctions, which caused a decline in exports.