Iran secures 8-bln euro loan from South Korea

Iran secures 8-bln euro loan from South Korea

Iran has secured an eight-billion euro credit line from South Korea’s Eximbank, the Iranian central bank governor Valiollah Seif said.

"The biggest contract since the atomic accord was signed with South Korea’s Eximbank today for the amount of eight billion euros ($9.4 billion)," IRNA cited him as saying.

A spokesman for South Korea’s export credit bank, contacted by AFP, said the deal would finance projects in Iran by companies from the Asian country.

"We started signing with Iranian banks a framework agreement today. We did it with three Iranian banks today and will do so with nine other Iran banks in the coming week to complete the agreement," he said.

"Under the agreement, Eximbank will provide an eight-billion euro credit line for those banks so that they can help finance various projects in Iran that are awarded to South Korean companies,” the bank spokesman said.

Seif said the loan would facilitate “several development and production projects”, and it showed the international community was ready to restore “long-term” banking ties with Iran.

"One of the problems created by international sanctions was they put a halt to financial accords," the central bank chief added.