The World Bank is reportedly using US monetary contributions to help Iran build up and develop its various industries and gas sector.
The World Bank’s Multilateral Investment Guarantee Agency (MIGA) has issued $122.2 million in guarantee coverage for three foreign companies which have in turn invested a total of $42.8 million in Iran’s Mehr Petrochemical Company, Fox News reported.
The three companies are Cementhai Chemicals Company and National Petrochemical Public Company Ltd., both from Thailand, and Itocho Corporation, from Japan, with the latter providing the Iranian company with an additional $96 million shareholder loan, which is also underwritten by MIGA.
MIGA uses contributions to provide financial guarantees to secure foreign investments in developing countries. It is the first time, however, that the Agency has provided such coverage for foreign investments in Iran.
According to Fox News, The US has provided the World Bank with nearly $24 million since 2000.
These projects have helped Iran ‘diversify its exports away from oil’ and ‘contribute to government revenues’, Fox News quoted MIGA as saying.