Tehran, Aug 22, IRNA-Export Development Bank of Iran (EDBI) signed on Monday a financing agreement for export of over 800 Samand automobiles manufactured by Iran giant automobile manufacturing Iran-Khodro Industrial Group.
The Exports Guarantee Fund of Iran (EGFI) has also extended coverage for the financing.
The agreement was signed between Managing Director of EDBI Norouz Kohzadi and Managing Director of Azerbaijan's Elite Industrial and Trade Group Ali Ousan.
An after-purchase service contract was signed between Deputy Director of Iran-Khodro Industrial Group Mojtaba Shivapour and the Azeri official.
Kohzadi said that over 85 percent of the credit of the contract is provided by the EDBI.
The contract stipulates for offering dlrs five million of facilities to the foreign side enabling the company to purchase 800 cars in the first phase of the project.
In order to reduce the customs fees the cars are to be exported in kits parts.
He added that the cars are to be delivered in the next three months.
Shivapour also said that an assembly line will be constructed by Iran-Khodro in Azerbaijan in the next two months.
The line is to manufacture over 5,000 cars annually for domestic markets as well as exports to neighboring nations, he added.
The plans call for Iran to grab over one-third of Azerbaijan's domestic automobile market.
Shivapour referred to the agreement for exports of 200 buses to Azerbaijan adding that from the figure 50 have been exported and another 150 will be exported gradually in the coming months.
Ousan also said that the contract is impetus of strengthening bilateral trade ties.
He said that the automobile assembly line will provide opportunity for expansion of exports of Iran-Khodro to Central Asian states.
Samand has previously been exported to other regional countries including Ukraine and Russia.
Azerbaijan ambassador to Iran said here in July that Tehran-Baku trade exchange has increased sixfold since 1998 reaching close to dlrs 600 million annually.
Abassali Karam Oghlou Hassanov told IRNA that he expects the bilateral trade volume to increase to dlrs one billion annually in the near future.
He also said that various development and electricity projects underway by the Iranian experts will strengthen overall relations between the two nations.
... Payvand News - 8/23/05 ... --