News   /   Economy

Iran says IsDB approved its proposal for preferential financing

Photo by the Iranian finance ministry’s news service Shada shows finance minister Ehsan Khandouzi during an annual meeting of the Islamic Development Bank on April 29, 2024 in Jeddah, Saudi Arabia.

Iran’s finance minister says the Islamic Development Bank (IsDB) has accepted a proposal from the country to launch a preferential financing program.

Ehsan Khandouzi said on Monday after an IsDB annual meeting in Jeddah, Saudi Arabia, that the bank had agreed to create a new mechanism under which member countries can receive finances from the lender under a preferential arrangement.

In preferential financing, a bank agrees to offer a lower rate of financing to clients so long as they adhere to a certain set of commitments.

Khandouzi did not elaborate on further details.

The minister had said earlier on Monday that Iran will negotiate with the IsDB to receive new loans for key development projects in the country, including projects focused on health and knowledge-based enterprises.

He had said last week before departing for Saudi Arabia that Iran had paid back all its debts to the IsDB in order to be able to receive new loans from the lender.

In his address to the IsDB’s meeting in Jeddah, Khandouzi described the bank as a “credible international financial institution” which has played a “pivotal role in the progress and solidarity” of nations in the Muslim world and in the West Asia region.

Press TV’s website can also be accessed at the following alternate addresses:

Press TV News Roku