TEHRAN – The Islamic Development Bank (IDB) has agreed to grant Iran a €55 million loan for the development of the second phase of the Khuzestan Steel Company.

The fund will help boost production of Iran’s major steel producer from the current 2.4 million tons to 3.2 million tons per annum, the Export Development Bank of Iran (EDBI) quoted Tahmasb Mazaheri, the representative of Iran in the IDB, as saying here on Tuesday.

In its first development stage, Khuzestan Steel Co. has successfully managed to increase its production of metal parts from 1.5 million tons to 2.4 million tons per year, the Iranian official announced.

The IDB has granted the fund for the development of the project in Iran within its Purchase and Leaseback Program, Mazaheri explained, adding that the loan repayment period has been set at seven years.

Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) has guaranteed the repayment of the IDB loan, he commented.

The Islamic Development Bank is an international financial institution established in pursuance of the decisions made by the Conference of Finance Ministers of Muslim Countries held in Jeddah in 1973. The main objective of the bank is to foster economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Islamic law.