TEHRAN - The Islamic Development Bank (IsDB) is offering Iran a credit line worth €700 million following the negotiations made and reimbursement of arrears of the Iranian government at the bank.

Despite Iran’s shareholding, the Islamic Development Bank had refrained from paying loans to Iran in recent years.

However, the Iranian government managed to negotiate and attract the attention of the officials of the Islamic Development Bank to pay its arrears and receive a loan worth €700 million.

The Islamic Development Bank has considered a €700 million credit for the Islamic Republic of Iran and payment of its previous arrears, a senior aide to Iran’s minister of economy stated.

He further revealed the establishment of a BRICS financial institution which is equivalent to the World Bank.

Fazel Moridi said Iran will soon be a shareholder of the Multilateral Development Bank (MDB).

A multilateral development bank (MDB) is an international financial institution chartered by two or more countries to encourage economic development.

Back in April, during an official meeting of the Islamic Development Bank (ISDB) which was held in Riyadh, Saudi Arabia, Iran negotiated to secure funding for three major projects by the bank.

Senior Iranian officials including the CBI Governor Mohammadreza Farzin, and Finance and Economic Affairs Minister Ehsan Khandouzi attended the ISDB meeting which was held on the occasion of the bank’s 50th establishment anniversary.

Speaking to the press on the sidelines of the event, Khandouzi said: “ The only institution that, despite the sanctions of the United States, continues to support the country's construction projects by financing from international credits, is the Islamic Development Bank.”

“Today, we have 11 important projects in different provinces, which are financed by the Islamic Development Bank,” the minister said.

“One of the major goals of our negotiations with the Islamic Development Bank during this event is to add three important projects in the field of healthcare and knowledge-based to the 11 projects that are already financed by the bank,” Khandouzi said.

The official noted that the Iranian delegation has arranged bilateral meetings with the economic ministers of the member countries, especially the target countries that have a stronger role in Iran’s economic interactions.

“Of course, I will also have a one-on-one meeting with my Saudi counterpart,” he added.

The annual ISDB meeting kicked off in Riyadh, the capital of Saudi Arabia on Saturday, April 27, and continued until Tuesday, April 30.

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