Nearly $8b paid to SMEs, semi-finished projects in a year

May 3, 2020 - 14:25

TEHRAN – Iran’s Ministry of Industry, Mining and Trade’s data show that 335.77 trillion rials (nearly $7.99 billion) has been paid to small and medium-sized enterprises (SMEs) and semi-finished industrial projects with an over 60 percent physical progress during the previous Iranian calendar year (ended on March 19).

The mentioned payments were made in the form of 20,930 bank loans to various projects and production units, IRNA reported.

The highest payment was made to SMEs and projects based in Tehran Province with 1,434 facilities amounted at 67.44 trillion rials (about $1.6 billion) and the lowest was related to the south of Kerman Province with only three loans amounting to 14.5 billion rials (about $345,230).

Central Bank of Iran (CBI) defined supporting production as its major plan in the previous Iranian calendar year, which was named the Year of Pickup in Production.

CBI Governor Abdolnaser Hemmati has several times stressed that supporting production units to flourish production is the priority of the country’s banking system.

In early May 2019, Hemmati outlined CBI plans for neutralizing or relieving the impact of U.S. sanctions on the country’s economy and mentioned providing liquidity and working capital to maintain and boost domestic production as one of those plans.

CBI’s plans take two major approaches, one of which is to secure finance for production activities and also to provide the working capital needed for such activities.

EF/MA

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