Name of God
Foreign Funds Guide
Organization of Investment and Economic and Technical Assistance of Iran
Office of Lending, Assemblies and International Institutions
Foreign funding center
Based on the experience gained during the post-war years on the use of foreign loans and facilities, the authorities and planners of the country have taken advantage of these experiences and in order to control the debt ceiling as well as the optimal allocation of resources, they always have materials in the five-year plans. The country's development is dedicated to this.
Article 13 of the Fourth Schedule of the Fourth Program (Attachment No. 1) and the Implementing Provisions of this article have addressed this issue. In addition, "it is described in the Law on the Development of Fifth Development of Permits under Articles 82 and 83. The Executive Code facilitated the use of this facility due to problems such as the prolongation of the labor process, the internal bureaucracy and ... The delegation was entrusted with the task of reviewing and amending this regulation to the Ministry of Economic Affairs and Finance. Finally, after numerous expert studies and meetings, the "Amendment to Article 13 of the Fourth Development Plan Law No. 69807 / 35915 dated 6/8/1385 approved by the Ministerial Council (Attachment No. 2). The most important items in this regulation are:
1- Determining the responsible person for the external financing process (finance).
2. Establishment of the Board of Directors to provide external financing.
3. Establishing an external funding center with a view to creating a focused and responsive collection of questions and ambiguities.
4. To shorten the process and time needed to execute the financing process by separating the responsibilities of trustees.
5. Avoid confusion of executors of designs in executive machines.
6. Reduced the attendance of project executives to executive agencies.
In accordance with the provisions of the Code, and with the need for the participation of relevant executive agencies in the new process and the establishment of close interaction with these devices, the Center for the Financing of Foreign Financial Resources was established in the Office of Lending, Assemblies and International Organizations. The center, which is composed of experts from the organization and representatives of banks and relevant ministries, is responsible for managing and directing financing applicants. The main tasks of the center are:
1- Obtaining and examining the form of evidence provided by the applicant
2- Initial acceptance of the project if the documents are complete
3- To simultaneously send the documents to the relevant authorities within three business days
4- To keep track of affairs in the relevant executive bodies in order to carry out actions related to the duties of that device at the times stipulated in the resolution
5- Issuance of warranties for the use of designs from external sources
6. Review, identification of bottlenecks and legal, regulatory and operational challenges of the external financing process and report to the Board of Directors
7- Preparing monthly and six-monthly reports required by the Board of Directors
8. Investigation of complaints of applicants for using external resources and helping to resolve possible problems through the board of directors
9- Answering the questions of applicants for using external sources
Accordingly, and in accordance with the most recent resolution of the Ministerial Council on this matter (Resolution No. 69807/35915 dated August 6, 2005, above), the request for the use of such financial facilities should be submitted to the external financing center of the organization Relevant action is taken to review the plan, obtain relevant licenses and, consequently, the use of credits considered appropriate. The collection of information provided in the form of an external financing guide, while complying with the abbreviation, explicitly defines the use of these credits.
Use of financial resources and foreign credit lines
The use of foreign financial resources and credit lines that are commonly used in Iran as finance is used to execute projects and to purchase equipment and capital goods for production projects as well as technical and engineering services for projects in accordance with the financial contracts concluded with foreign creditors. The process of implementing this method is based on the last modification of the above-mentioned Cabinet of Ministers, as follows:
1. Acceptable Activities:
- Implementing new infrastructure / production projects and development plans through foreign dealers and contractors.
- Purchase of technology, machinery and equipment for capital and engineering services from abroad.
2. Qualified conditions:
All institutions, corporations and legal entities, public and private (private) who need to purchase from abroad.
3. Fixed Requirements:
The required deficiencies, according to the identification of the credit references of the bank, shall be the following items or items of the following defects:
a. Private sector
- The desired design
- Immovable property
- Proven / over
- Long-term deposit bank deposits
- Stock Bonds of the companies accepted in the stock exchange
- important papers, worthy documents
- Other items in recognition of bank credit references
B. Public sector
For the public sector, the following documents and collections are required:
- Decree of the Economic Council of the Government
- Article 62 of the General Accounting Law
4. Rate of interest and expenses incurred on the facility:
Facility benefit based on the type of foreign bank contract is calculated based on two principles of floating rate (LIBOR / EURIBOR) for a six-month period plus a margin of profit (usually 0.5%) or fixed rate (CIRR) and based on OECD rules. The rates are different at different times. In the current situation (January 2009), the floating rate is an average of 30.3% and a constant rate of 4.6%.
Other costs include:
- The cost of management is about 125% of the amount of the facility, which once and at the beginning of the use of facilities is obtained.
- The cost of the commitment is about 125% of the unused amount, which is taken on an annual basis.
- Export premium of the country