TEHRAN – The Islamic Development Bank (IDB) agreed to grant some 50 million euros to Iran Khodro Company (IKCO) to manufacture a new generation of national car engines.

Iran representative in IDB, Tahmasb Mazaheri said here on Wednesday that the allocation of this loan will decrease the final cost price of the cars and increase competitiveness of the car market in the region.

He also said that the main aim behind granting this loan was to increase the standards of auto manufacturing industry in producing economical car engines that do not pollute the environment and are quite high fidelity, so that they can at least receive the Euro IV environmental standards.

The former minister of economic affairs and finance also said that as the greatest car manufacturing company with considerable economic and production activities, Iran Khodro has accepted to receive the loan to improve its capital and financial structures.