Iran has allocated a credit line of 500 million euros (about 685 million US dollars) to Cuba.
Abel Salas, vice president of Cuba's National Institute of Water Resources, announced the allocation Wednesday at a meeting with Iran's deputy energy minister in Tehran, Tehran Times reported on Thursday.
Salas expressed the hope that some parts of the credit line would be used for the reconstruction of Cuba's energy system.
Iran and Cuba signed a protocol for economic and trade cooperation in September during Iranian Vice President Mohammad Reza Rahimi's visit to Havana. The protocol stipulated that Iran would expand its credit to Cuba from 270 million to 680 million US dollars.
It also included accords on the two countries' collaboration in industry, energy, trade, health, finance, biotechnology and hydraulics.
Iran has been producing equipment for rail systems and synthetic media for the Cuban market under a 2009 agreement. The expansion of credit will also support the program.
Iran has in recent years expanded friendly ties with Latin America, specially in economic, trade and industrial fields.
Since taking office in 2005, Iranian President Mahmoud Ahmadinejad has expanded Iran's cooperation with many Latin American states, including Venezuela, Bolivia, Ecuador, Brazil and Cuba.
The strong and rapidly growing ties between Iran and Latin America have raised eyebrows in the US and its western allies since Tehran and Latin nations have forged an alliance against the imperialist and colonialist powers.