Iran will open a credit line to Venezuela and the first loan will be worth $500 million, intended for securing investments and implementing a number of other bilateral projects.

Venezuela's foreign currency reserves have fallen to a 12-year low, the economy is in recession, inflation is skyrocketing and there are severe shortages of essential goods. (Photo: AFP/TTXTN)

According to a recent statement by Venezuelan President Nicolas Maduro, the agreement that Caracas and Tehran have just signed is in the form of an open credit, but did not specify the time of disbursement of the first loan mentioned above.

Meanwhile, Iranian Minister of Industry, Mines and Trade Mohamed Reza Nematzadeh said the document the two sides just signed is a preliminary agreement and not yet official.

Currently, liquidity is one of the most urgent problems of the Venezuelan economy as foreign currency reserves have fallen to a 12-year low, the economy is in recession, inflation is skyrocketing and there is a severe shortage of essential goods.

Since the beginning of the year, China has agreed to provide Venezuela with two credit packages worth a total of 10 billion USD, mainly aimed at increasing oil and gas production./.

(According to VN+)