Share of Foreign Finance Set in the National Budget 1397 (21 March 2018-20 March 2019)

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Nourlaw- 19 March 2018- Tehran- According to Note 3 of the National Budget 1397 (21 March 2018-20 March 2019), the maximum amount of foreign finance for projects, plus the remaining share from last year’s finances will be set at the equivalent rate of  USD 30b in Iranian Rial. In instances where the use of foreign finance and legal authorization depends on the guaranty of the government of the Islamic Republic of Iran for paying back the principal and related costs of the acquired financial facilities from foreign brokerage banks and international development banks and institutes, the Minister of Economic Affairs and Finance shall be authorized, upon approval of the Council of Ministers on behalf of the Government, to issue necessary general or special guarantees for such projects within a maximum period of one month, or with the approval of the Council of Ministers, delegate the authorization of signing to the related authorities.

The projects of the private and cooperative sector and non-governmental public organizations and knowledge-based companies can also use the facilities by providing the necessary guarantees to the operating banks, and the repayment of the principal facility and the interest pertaining to each of the said projects will be secured and paid from the revenues of the project.

For all the projects approved by the Economic Council whose resources are provided from foreign finance, obtaining approval from the relevant executive agency (in order to confirm the priority for the use of foreign financing), the Ministry of Economic Affairs and Finance (for the issuance of the government guarantee), the Central Bank of the Islamic Republic of Iran (in order to control the equilibrium and management of the foreign currency balance of the country), and the Management and Planning Organization of Iran (for insuring proper oversight of the control of public sector projects, including corporate projects and capital asset ownership projects) is essential and the repayment of the principal and interest of each project shall be secured and payable from the revenues of the respective project or the resources foreseen in this law. (Source: Official Gazette 19 March 2018)