IDB extends loans of 10 million euros to Iran
2005-05-23
Iran's permanent envoy to Islamic Development Bank (IDB) Hojatoleslam Khonsari met head of IDB Ahmad Mohammad Ali on Wednesday.
The meeting took place at the IDB headquarters in Jeddah. The two sides stressed on the need for closer economic cooperation among the Islamic counties, notably in investment and trade exchange.
The two officials also expressed satisfaction on the level of cooperation between Iran and IDB on banking affairs and emphasized the desire for bolstering mutual contacts.
Khonsari also lauded IDB's performance saying it is beneficial to the economic goals of Moslem nations.
Saudi Arabia, Kuwait, Libya, Iran, Egypt, Turkey, UAE, Algeria, Indonesia and Pakistan are ten major shareholders of the IDB which has 55 members.
Iran is the fourth biggest shareholder of the Islamic Development Bank (IDB). IDB is one of the world's five major banks with a total capital of dlrs 20 billion.
He added that IDB annually provides each of its members with four billion dollars of banking facilities.
In the latest cooperation between the two sides Islamic Development Bank (IDB) agreed in March to extend a loan of 7.5 million euros to Behshahr Industries Development Company.
The Public Relations Department at Ministry of Economic Affairs and Finance on Saturday quoted an IDB letter to Iran's Investment, Technical and Economic Assistance Organization, affiliated to the ministry, as saying that the Bank had agreed to extend 7.5 million euros to Behshahr Industries Development Company under the Import Trade Finance Operation (ITFO) financing mechanism.
IDB had earlier extended loans of 10 million euros to Iran's Khorassan Steel Production Facility, Euro 8 million to ISFAHAN STEEL PUBLIC INCORPORATION, to purchase Raw Materials, and of 34 million euros to three Iranian manufacturing companies, including 20 million euros to Iran Tire, four million euros to Zamzam and 10 million euros to Aluminum Pars companies.
The IDB loans to Iranian companies under ITFO credit line will finance imports, mainly raw material, from other member states or Islamic countries at low interest rates by the beneficiaries.
The objective of the IDB is to promote economic development and social progress in member countries as well as Muslim communities.