Bank loans to economic sectors increase over 59%

December 26, 2021 - 14:41

TEHRAN- Iranian banking system has paid 17.274 quadrillion rials (over $58.1 billion) of facilities to domestic economic sectors in the first eight months of the current Iranian calendar year (March 21-November 21), registering a 59.2-percent rise from the same period in the previous year, IRNA reported.

According to the data provided by the Central Bank of Iran (CBI), the country’s banking system paid 11.481 quadrillion rials (about $38.65 billion) of facilities to various economic sectors in the previous year’s first eight months.

As reported, working capital loans paid to different economic sectors in the mentioned eight months were above 11.48 quadrillion rials (about $38.6 billion), accounting for 66.5 percent of the total provided facilities.

During the said period, the country’s mining and industry sector received over 4.069 quadrillion rials (about $13.7 billion) in the form of working capital loans, accounting for 35.4 percent of the total such facilities.

Back in November, the CBI had announced that 14.828 quadrillion rials (over $49.92 billion) of facilities were paid to domestic economic sectors in the first seven months of the current Iranian calendar year (March 21-October 22), to register a 58.5-percent rise from the same period in the previous year.

According to CBI, the country’s banking system offered 18.989 quadrillion rials (about $63.93 billion) of facilities to domestic economic sectors in the previous Iranian calendar year of 1399 (ended on March 20), 94.8-percent more than the figure for its preceding year.

CBI has defined supporting production as one of its major plans over the past two years.

Former CBI Governor Abdolnaser Hemmati had repeatedly stressed that supporting production units to flourish production is the priority of the country’s banking system.

In early May 2019, Hemmati had 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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