ROME: The Italian government is planning to offer up to €8 billion ($8.71 billion) in financing for companies to invest in Iran, as they expect Italian exports to Iran to quadruple in two years.
Under the terms of the agreement announced Saturday, the United Nations lifted its sanctions on Iran, and the European Union and the U.S. lifted their nuclear-related measures. U.S. President Barack Obama immediately issued an executive order revoking earlier orders that imposed nuclear sanctions on Iran, and the names of hundreds of people and companies removed from U.S. blacklists were released in a single list.
Italy—which had strong ties with Iran before the sanctions—is eager to benefit from potential business opportunities arising. The government has been trying to pave the way to revamp trade relations in the last months and is working to help Italians get closer to investors and prospective clients in Iran. Vice Minister for the Economic Development Carlo Calenda already visited Iran this past November to help nearly 400 Italian firms meet Iranian prospective counterparts. He said he would go back every few months to check on the progress made by Italy’s corporate world.
“We see all the elements lined up to reach a target of €4 billion in exports with Iran by 2017,” Mr. Calenda said in an interview Monday. He added that at the moment, exports are at €1 billion.
Mr. Calenda said export credit company SACE—controlled by State-controlled lender Cassa Depositi e Prestiti — is getting ready to make available up to €8 billion in financing for Italian firms that want to have business in Iran. He also said the Bank of Italy is in talks with the Bank of Iran to open the branch of an Iranian bank in Italy in a move to make financial transactions easier. He expects an agreement to come by March.
