NDF of Iran Signs €50m Credit Line Agreement With Kyrgyzstan

TEHRAN (Iran News) The credit line will be allocated by the NDFI to Iranian exporters of technical and engineering services, through banks selected by the exporters themselves.

The agreement was signed by Mehdi Ghazanfari, Chairman of the NDFI, and Bakyt Toromushevich Seydikov, Minister of Economy and Commerce of the Kyrgyz Republic.

At the beginning of the meeting, Minister Seydikov expressed his condolences on behalf of the Kyrgyz government and people regarding the recent incident at Shahid Rajaee Port, stating his belief that the damaged infrastructure would soon be rebuilt.

Highlighting the bright future of economic relations between Iran and Kyrgyzstan, Seydikov emphasized the importance of strengthening bilateral ties, noting that the National Development Fund’s role in this regard is crucial. He added that the signing of this memorandum of understanding would contribute to boosting investment and expanding bilateral cooperation.

Discussing Kyrgyzstan’s current economic situation, the Minister stated that the country has experienced notable growth, achieving a 9% economic expansion in recent months and currently reaching 13%. He added that government debt remains under control, and inflation is maintained between 5–7%, thanks to ongoing economic reforms.

Seydikov further noted significant investments in Kyrgyzstan’s transportation and energy sectors, explaining that these efforts have reduced the time and cost of goods transportation to and from China. The new infrastructure projects, once operational, will greatly enhance logistics and natural resource exploitation opportunities.

He also revealed plans to construct a 1,900-megawatt hydroelectric power plant this year, supported by external financing. He stressed that Iran has an excellent opportunity to invest in Kyrgyzstan, where there is high demand for Iranian goods and services. Kyrgyzstan is particularly eager to cooperate with the NDFI.

The Kyrgyz minister also pointed out that Kyrgyzstan collaborates with development funds from Azerbaijan, Russia, Uzbekistan, and Hungary, and now looks forward to expanding cooperation with Iran’s National Development Fund. He added that the planned NDFI office within Kyrgyzstan’s Ministry of Economy would significantly contribute to modernizing Kyrgyzstan’s economy.

Seydikov announced that a dedicated space would be provided for the Iran-Kyrgyzstan Joint Committee within his Ministry and assured that investment risk in Kyrgyzstan is very low. He also emphasized that Kyrgyzstan’s financial markets have performed very well this year, declaring that the country’s economic doors are wide open for Iranian investors and the NDFI.

In a press briefing after the signing ceremony, Minister Seydikov described the memorandum of understanding as a foundation for enhancing economic cooperation between the two countries, enabling Iranian investors to participate in technical and engineering projects across Kyrgyzstan.

He noted that the initial phase aims to attract €50 million in investment, with an option to extend it by another €50 million if the first phase proves successful.

Seydikov praised Iran’s strong industrial and economic capabilities, particularly in providing technical and engineering services. Given Kyrgyzstan’s high demand for investment, the agreement aligns well with the needs of both countries, he said, reiterating that Kyrgyzstan offers a promising and welcoming market for Iranian investors.

Regarding Kyrgyz interest in investing in Iran after the lifting of sanctions, he remarked that the two nations have always maintained good-neighborly relations, and removing barriers to investment would further strengthen their friendly ties.