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Japan resumes loans to Iran

SPECIAL TO WORLD TRIBUNE.COM
Wednesday, June 16, 1999

LONDON -- Japan plans to renew its loans to Iran after a six-year lull.

The Japanese daily, "Yomiuri Shimbun" reported Sunday that said.Japanese Foreign Minister Masahiko Komura will formally notify Iran of the decision during an upcoming visit in July.

Japan intends to provide a 1.25 billion dollars loan for the construction of a dam and hydraulic power plant on the Karun River in Khuzestan Province, southwestern Iran.

Japan has revised its policy towards Iran since President Mohammed Khatami began to institute economic reforms.

Japanese officials say they do not expect the U.S. administration to oppose the loan.

In 1993, Japan pledged payment of a 38.6 billion yen loan as part of an aid package for the dam and power plant but additional funding was suspended after the U.S. tightened economic sanctions against Iran.

Wednesday, June 16, 1999


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