Iran’s sovereign wealth fund, Kyrgyzstan ink €50m credit line deal
Iran’s National Development Fund (NDF) signed a €50 million credit line agreement with Kyrgyzstan on Sunday.
The agreement was inked by Mehdi Ghazanfari, chairman of the NDF Executive Board, and Bakyt Sydykov, Kyrgyzstan’s minister of economy and commerce, as reported by IRNA.
The credit line will be made available through a bank selected by the exporter, enabling Iranian exporters of technical and engineering services to finance their projects in Kyrgyzstan.
“This investment has two main benefits; on the one hand, it contributes to Kyrgyzstan’s economic growth through the implementation of construction projects, and on the other hand, it activates the production chain in Iran, as Iranian contractors will be required to use Iranian goods and equipment,” Ghazanfari said.
The chairman of the NDF Executive Board also said the two sides agreed to re-establish a joint investment committee to oversee the projects.
Pointing to the need for high quality projects, he added, “The quality of project implementation is very important for the National Development Fund. We are seeking to create a mechanism where real representatives of the Iranian private sector, who prioritize national interests, are present in the joint committee so that the interests of the two countries are properly protected.”
Ghazanfari announced the possibility of doubling the credit line to €100 million, depending on project performance.
The Iranian official said the goal is to fully absorb the first 50 million euros by 2025, and if successful, the second 50 million euros will also be allocated, adding, “Exporting technical and engineering services will not only generate foreign currency for the country, but will also develop factories and create jobs.”
Sydykov, for his part, said Kyrgyzstan and Iran have always had strong relations, and Sunday’s deal will pave the way for the development of bilateral economic and technical cooperation.
Emphasizing the importance of this deal, he said, “We in our team are adopting the best working methods to attract investment. The demand for infrastructure projects in Kyrgyzstan is very high, and this joint cooperation with Iran will open a new chapter in the economic relations of the two countries.”
Sydykov underscored the strong and expanding economic ties between the two countries, noting that current cooperation remains far below their potential.
The minister said the new agreement would bolster investment, highlighting Kyrgyzstan’s steady economic growth, controlled public debt, and an inflation rate between five and seven percent.
Sydykov also placed a premium on ongoing economic reforms and currency stability in Kyrgyzstan.