Turkey eyes extending $400M credit line to Iran

Society Materials 25 April 2016 15:36 (UTC +04:00)

Baku, Azerbaijan, April 25

By Khalid Kazimov - Trend:

The Turkish government's major export incentive tool, Turk Eximbank, is expected to extend $400 million credit line to Export Development Bank of Iran.

Ali Salehabadi, the head of Export Development Bank of Iran, has said that the credit line will be used for importing raw materials as well as launching projects in the country, IRNA news agency reported.

Salehabadi further predicted that the contract for extending the credit line will be signed within the next couple of months.

Iranian and Turkish officials signed several memorandums of understanding (MOUs) on the sidelines of a meeting between Turkish President Recep Tayyip Erdogan and his Iranian counterpart Hassan Rouhani in Ankara Apr. 16.

Tehran and Ankara intend to raise their bilateral trade to $30 billion per year. Trade turnover between the two countries stood at $13.71 billion in 2014 and $9.76 billion in 2015.

Although the trade turnover dropped by 29 percent in 2015 compared to the preceding year, many observers believe that the decline came amid global economic crisis ruling out the role of existing political disagreements.