The MoU, in addition to defining framework of cooperation between Iranian and Chinese banks, provides a basis for long-term ties with China Development Bank in technical, operational and human resource training areas.
CBI Governor Valiollah Seif who is China now in meeting with CDB Chairman Hu Huaibang, voiced satisfaction towards collaboration between the two sides for financing the project of electrifying Tehran-Mashhad railway.
Seif reiterated that the expansion of relations opens a new chapter in Iran-China trade and financial ties and that the supports offered by the Chinese banks are worth appreciation.
In a relevant development on Friday, China signed an agreement with Iran to provide a credit line of $10 billion for its infrastructure projects.
The agreement was signed between China’s CITIC Trust and a consortium of Iranian banks that included Bank of Industry and Mine, Refah Bank, Parsian Bank, Bank Pasargad and Export Development Bank of Iran.
Based on it, CITIC would provide loans to the Iranian banks to fund projects in areas such as energy, natural environment, transportation and the management of water resources.
Seif who oversaw the signing of the agreement said that the Iranian banks could start receiving loans from CITIC as early as October.
The CBI governor emphasized that the CBI had shown “extensive flexibilities” towards CITIC in sealing the agreement.
He added that this was based on the bank’s history of positive cooperation with the Islamic Republic without elaborating what those flexibilities constituted.
Last September, Iranian nedia quoted a CITIC official as saying that the enterprise was considering to provide Iran with $10 billion of financing, mostly in the country’s steel, copper and coal projects.
The official, identified as Zhou Yafang by the English-language newspaper the Financial Tribune, added that the Chinese government was expected to issue the required permits by the end of 2016 and that the financing process would start in 2017.
Zhou had also emphasized that the financing is fully backed by China Export and Credit Insurance Corporation known as Sinosure.
The Beijing-based CITIC Trust is a state-owned investment company established in 1979. It now owns 44 subsidiaries, including China CITIC Bank, CITIC Holding, CITIC Trust Co. and CITIC Merchant Co. Ltd in China, Hong Kong, the United States, Canada, Australia and New Zealand.
