Overview

Iran

Framework Agreement and prospects in Iran

Tuesday, January 23, 2018, from 3:30pm to 5:30pm at the Palazzo Parigi Milano, the working table organized by The European House – Ambrosetti as part of the annual projects of the “Iran – Italy Summit” community took place.

Framework Agreement and prospects in Iran

Just days following the ratification of the “Financing Framework Agreement” on January 11th between Invitalia Global Investment and the Iranian Bank of Industry and Mine and the Middle East Bank, The European House – Ambrosetti brought together experts and business leaders interested in operating in the country, as well as other members of the “Iran – Italy Summit” community to discuss the main aspects of the agreement and the operational implications for Italian companies.

During the meeting—attended by over 40 representatives of leading Italian companies—the operational mechanisms of the financing agreement were outlined. The agreement makes available lines of credit of up to 5 billion euros for strategic investment projects, and also solves one of the key problem areas which, until now, has limited investment in the country and full implementation of the JCPOA accord: the granting of sovereign guarantees for these investments.

At the meeting, the main points still to be resolved and critical areas of the agreement were also identified. The requests of the business community and operators present were gathered to be brought to the attention of the government and Invitalia in order to define precisely the mechanisms for gaining access to financing and other operational aspects of the framework agreement.

The working table also served to provide a status report on the country risk and investment prospects in Iran, especially in the wake of the policy of the US administration and recent protests in the country, aspects which have been covered extensively in Italian and international media.

The outlook remains positive: Italy is once again Iran’s no. 1 trade partner among EU countries (8th on a global level), and there remain vast opportunities in a country which needs to attract over 90 billion dollars in investment. Despite a number of unresolved questions, the agreement puts Italy in the vanguard compared with other European countries, thanks to the mechanisms made available to companies looking to do business and invest in Iran.

 

 


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