Clamped down by U.S. led economic sanctions, Iran remains an untapped and politically volatile market.

Iran and Italy are set to sign a framework for credit agreement worth 5.0 billion euros on Thursday which will facilitate investments by Italian companies in Iran, said a source from its Treasury department.

As per the source, the agreement will see opening of lines of credit to two Iranian banks by Invitalia, an Italian state-owned holding, which will help finance investment projects by Italian companies.

The accord will be signed by Invitalia Global Investment, Invitalia’s investment arm, and two Iranian banks – Mine and Middle East Bank and Bank of Industry.

The source went on to add that the Iranian government will guarantee financing of projects.

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Tags: Bank of Industry, credit agreement, investment projects, Invitalia Global Investment, Iran, Italy, line of credit, Mine and Middle East Bank