Iran Says $13b Korean Finance on the Way

Financial Tribune – Minister of Economic Affairs and Finance has confirmed local media reports of an imminent South Korean $13 billion credit line to support Iranian projects–a measure, which if finalized, will mark the biggest instance of foreign finance for the country since the implementation of the nuclear accord in January 2016.

Persian-language Sharq, a leading reformist newspaper, had published an exclusive report on Tuesday saying that Economy Minister Ali Tayyebnia would travel to Seoul within the next month in order to formally attend an event to complete the procedure, citing an unnamed "credible source".

In a talk with Fars News Agency on Friday, Tayyebnia confirmed that the credit line is aimed at financing Iranian projects and "we have been negotiating regarding the quality of a trade agreement and the details of guarantees".

Noting that "fortunately th e positive results would be achieved gradually", he added that the credit line is in no way related to Iran's oil income and will be provided in its entirety by South Korea.

Almost all the key details of the credit line have been reportedly agreed upon, and the Korean government has given the green light, based on which $8 billion will be provided by Export–Import Bank of Korea (KEXIM) while the Korea Trade Insurance Corporation (K-SURE) will account for the rest.

According to Sharq's source, $1.7 billion of the Korean finance will be allocated to the Isfahan refinery with another $3 billion going to the construction of eight gas condensates refineries in Siraf, Asaluyeh region.

Hyundai Motor Company, Daelim and Chiyoda Corporation "are meant to build these eight refineries as a consortium" in which Hyundai holds a 34% stake with the other two companies each holding a 33%. Eight Iranian consortiums which had started work on the projects before will remain the employers.

Executives with the Siraf Refineries Complex, which is owned by Iranian consortiums and who are overseeing the construction of the refineries, are reportedly in the final stages of negotiations with the Korean lenders and construction is set to begin from September 23 while the first payments will be made by late summer.

Unspecified amounts have also been reportedly earmarked for ethane extraction in phase 12 of South Pars Gas Field and building "an equipped hospital", the location and capacity of which is unknown as of yet .

Date : Saturday 17 June 2017 / Subject : Economic News - International News / Source : Financial Tribune