The Export Development Bank of Iran says its direct short term finance contract (re-finance) with London's Persia International Bank has increased to 30 million euros from four million euros.
The EDBI Public Relations Department said on Tuesday that the deadline for opening Line of Credit has been extended up to December 23, 2018.
Refinancing is the replacement of an existing debt obligation with another debt obligation under different terms. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. In many industrialized nations, a common form of refinancing is for a place of primary residency mortgage.
If the replacement of debt occurs under financial distress, refinancing might be referred to as debt restructuring.
A loan (debt) might be refinanced for various reasons, including to take advantage of a better interest rate (a reduced monthly payment or a reduced term); to consolidate other debt(s) into one loan (a potentially longer/shorter term contingent on interest rate differential and fees); to reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees); to reduce or alter risk (for example, switching from a variable-rate to a fixed-rate loan) and to free up cash (often for a longer term, contingent on interest rate differential and fees).