TEHRAN (Iran News) – Bank loans to economic sectors up nearly 47% in 2 months. Iranian banking system has paid 2.74 quadrillion rials (over $65.2 billion) of facilities to domestic economic sectors in the first two months of the current Iranian calendar year (March 21-May 21), registering a 46.6-percent rise from the same period in the previous year, IRNA reported.
According to the data provided by the Central Bank of Iran (CBI), working capital loans paid to different economic sectors in the mentioned two months were above 2.018 quadrillion rials (about $47.85 billion), accounting for 73.7 percent of the total provided facilities.
As reported, during the said period, the country’s mining and industry sector received 693 trillion rials (about $16.5 billion) in the form of working capital loans, accounting for 34.4 percent of the total such facilities.
According to CBI, the country’s banking system offered 18.989 quadrillion rials (about $452.1 billion) 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.
Earlier this month, the Industry, Mining, and Trade Ministry announced that 99.161 trillion rials (about $2.36 billion) was paid to small and medium-sized enterprises (SMEs) and semi-finished industrial projects with an over 60 percent physical progress during the first two months of the current Iranian calendar year.
The mentioned facilities, which were provided for renewing machinery, equipping production units, or completing semi-finished projects, were paid in the form of bank loans to 1,512 projects and production units.
CBI has defined supporting production as one of its major plans over the past two years.
Former CBI Governor Abdolnaser Hemmati has 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.