Japan, France propose $18.4bn loan plan to Iran if in full compliance with JCPOA

Tehran, 21 Oct. - (ANA) - Japan and France have proposed a joint plan to provide Iran with a loan of about $18.4 billion to be secured by oil if Tehran returns to full compliance with the Joint Comprehensive Plan of Action (JCPOA), media reported.

According to the Mainichi newspaper, the government of Japan decided to support France's initiative announced this summer to provide Iran with assistance in the amount of $15 billion after Tehran demanded an increase in loan volumes to compensate for the negative impact of tougher sanctions, and increase this amount to about $18.42 billion.

The media outlet added that the Japanese authorities were hoping in this way to smooth out the possible dissatisfaction with Tokyo's plans of sending two ships of the Japanese Self-Defense Forces to the Strait of Hormuz. In addition, according to the newspaper's sources, the Japanese government believes that financial support could help start a dialogue between Iran and the United States on the nuclear issue.

It is assumed that loan guarantees would be provided at the expense of oil, and the targeted use of finance will be limited to purchases of food and medicine.

The plan to reduce tension between Washington and Tehran was announced by French President Emmanuel Macron at a meeting with US President Donald Trump on the sidelines of the G7 summit in summer.

There was no immediate comment from Iran authorities.  - (ANA) -

AB/ANA/21 October 2019 - - -