Chinese investors are ready to join petrochemical projects in Iran provided that Iranian banks absorb the finances, the vice president of the Iran-China Chamber of Commerce says.
Speaking to NIPNA, Majid Reza Hariri said, "The Chinese
are ready to finance development projects in Iran, including those in the
petrochemical sector, if the Iranian banks can receive the finances."
Hariri said China's finance is ready for Iran and private
and public sectors have the option to use it, but from about $ 20 billion in
new financing with China, the absorption rate is not significant.
Describing the reasons for not attracting China's finance in
the projects by domestic and foreign developers, he stated: "To use
finances in each project, 15% of it must be provided by domestic resources, and
the average figure of $20 billion in foreign financing is about $3 billion.
There are limitations on domestic funding resources for supplying this
amount."
Hariri pointed out that for the use of finances, domestic
investors should be able to attract credit from Iranian banks and secure
collateral for the credits; for example, to attract $100 million, the project
should secure $15 million in domestic funding and $85 million in collateral.