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Managing Director of Export Development Bank of Iran described Irans international financing strategies in the energy sector.
In the first conference of international financing strategies in the energy sector, Ali Saleh Abadi said: Project financing can be divided in terms of methods of financing, projects, loans or partnership, public-private partnerships, business-based financing, credits, buyer credits, international loans, and buyback.
Describing the structured finance, he stated: This type of financing has formed an important part of the financial industry, leading to an increase in liquidity and risk transfer in different markets.
Studies show that foreign direct investment in any form have significant effects on macroeconomic variables such as reduction of interest and exchange rates, increase of economic growth and tax revenue, reduction of the government’s debts, improvement of income distribution, technology transfer, increase of employment, expansion of exports, reduction of imports as well as a positive impact on the balance of payments, Ali Saleh Abadi noted.
He described the requirements for implementing various methods of international financing, and said: The presence of international rating agencies and granting ranking to those who receive facilities, creating legal infrastructure based on international laws and regulations, coordinating financial reporting and accounting methods in accordance with International Financial Reporting Standards (IFRS), maximum use of the capacity of International Export Credit Agencies (ECA) in risk coverage, maximum use of finance by the Oil Ministry in the form of EPCF, and use of multilateral financing in the form of cooperation between countries, institutions and Exim banks are among such methods.