30% of Cooperative Sector Affected by the Virus Pandemic
IRAN NEWS ECONOMIC DESK
TEHRAN – Head of Iran Chamber of Cooperative Bahman Abdollahi says the outbreak of the Coronavirus has affected all businesses and the cooperative sector is not an exception and almost 30 percent of the sector has been seriously affected by the pandemic.
Speaking at a press conference yesterday, Mr. Abdollahi said the government has some supportive measures for the businesses which have been affected by the pandemic but all should, too, consider the government’s current condition.
He said almost 30 percent of the cooperative sector has been badly damaged due to the pandemic because the cooperative sector is liable to damage more than other big enterprises and some plans should be prepared for them for the post-pandemic era.
Abdollahi reiterated that despite the pandemic and its damages, all efforts are made to revive the activities of the cooperatives.
He also pointed to formation of a holding for administering 13 non-stock market companies, adding that the holding will be formed to run these 13 companies and it will pave the ground for those companies to enter the stock market. He also urged the share-holders of the companies not rush in selling their shares and to take advantage of the future advantages.
Abdollahi also announced that in the current condition it is impossible for the chamber to set up a private cooperative but the chamber pursues this idea seriously. He admitted that currently the policy of the Central Bank is to reduce the number of banks in the country and the merge of some banks is the proof for his claim.
He added each economic sector needs financial resources and in the country, 85 percent of economic activities are bank-centered and banks are tasked to finance them. Abdollahi noted that although currently Tose’e Ta’avon (Cooperative Development) Bank exists, due to the general condition it cannot favor any special advantage for cooperatives because it acts like commercial banks and it functions based on the banking system regulations but it can, at best, allocate more parts of its loan facilities to the cooperatives.
Abdollahi also pointed to the chamber’s activities regarding construction of houses for labors, adding that the chamber is involved in construction of houses for workers in the industrial parks, reiterating that the government will grant low-interest loans to the applicants for those houses and the chamber will do its best to lower the cost and price of the houses for the workers who apply for them.
