According to the data provided by the Central Bank of Iran (CBI), banks had paid 5.952 quadrillion rials (about $141.7 billion) of facilities to various economic sectors in the previous calendar year’s first five months.

As reported, working capital loans paid to different economic sectors in the mentioned five months were above 6.103 quadrillion rials (about $145.3 billion), accounting for 67.8 percent of the total provided facilities.

During the said period, the country’s mining and industry sector received over 2.191 quadrillion rials (about $53.185 billion) in the form of working capital loans, accounting for 35.9 percent of the total such facilities.

Back in July, the CBI had announced that over 4.976 quadrillion rials (over $118.4 billion) of facilities were paid to various economic sectors in the first three months of the current Iranian calendar year (March 21-June 21), registering a 71.3-percent rise from the same period in the previous year.

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.

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.

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Commenting on the domestic banking system’s supporting plans for reducing the ‎negative economic impacts of the coronavirus crisis in the country in an ‎Instagram post on Saturday, Abdolnaser Hemmati wrote, “All that the government ‎and the CBI want is to provide the people of the country with greater and more ‎extensive gratuitous financial assistance.”‎

He regretted, however, that cruel US sanctions, coupled with a decline in oil prices ‎and the costs involved in the fight against the spread of the virus, have created an ‎economic bottleneck for the government, limiting its resources. ‎

Hemmati added that despite these problems, the Iranian banking system will ‎immediately grant low-interest (four-percent) loans (between $238 and $476) to ‎four million low-income families in the country. ‎

He added that the CBI will also offer low-interest loans to the economic agencies ‎and businesses harmed by the spread of the virus.‎

Earlier, Hemmati said the domestic banking system will provide maximum ‎assistance to the domestic tourism sector that has been harmed by the spread of the ‎coronavirus.‎

He made the remark in an Instagram post, adding, “Today, along with First Vice ‎President [Es’haq Jahangiri], I attended a meeting with those involved in the ‎domestic tourism, cultural heritage, and handicrafts sectors. The officials of these ‎sectors, as well as the heads of the related associations, expounded on the problems ‎they face on account of the coronavirus contagion in the country at a time when ‎their activities should have been at their peak.” ‎

Hemmati said under normal circumstances, hotels, tourism and handicraft centers ‎as well as travel agencies in Iran reach the peak of their activities and income ‎generation during the New Year holidays (March 20-April 1), adding that this year, ‎their activities were completely suspended during the high season.‎

In the meeting, he added, they presented remarkable proposals concerning the ‎postponement of the due date for the payment of the installments and receiving ‎new loans to prevent further damage to their businesses.‎

The CBI governor also stressed that the biggest harm the virus causes is ‎endangering the lives of Iranian people, which is far more important than its ‎negative impacts on the economy.‎

He gave the assurance that the country’s banking system would provide, with ‎maximum assistance, the domestic tourism sector harmed by the coronavirus ‎spread, as prosperity would be restored to the sector only if the situation in the ‎country returns to normal and the spread of the virus is fully contained.‎

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“There are no worries regarding unpredictable shocks in the market and people don’t have to worry about sudden rises in the exchange rates,” Abdolnaser Hemmati told ILNA on Tuesday.

Asked about the supply of foreign currency for the imports of basic goods in the upcoming year, Hemmati said: “Necessary provisions have been made in this regard and we have not only considered the foreign currency needed for the imports of basic goods but also for the imports of raw materials and machinery by our producers.”

Pointing to the preferential trade agreement with the Eurasian Economic Union (EAEU), the official said the processes for trade with these countries are well underway and the situation will improve and new capacities will be created for increasing the country’s exports.

Following the assassination of Lieutenant General Qassem Soleimani in a U.S air raid in Iraq on Friday, Iran’s foreign currency market undergone some fluctuations. The central bank, however, believes that such changes in the currency exchange rates are short term and the CBI management has restored balance in this market.

Since the re-imposition of U.S. sanctions on Iran, the central bank has been seeking ways to protect the national currency with measures that include setting up a government-run foreign-exchange platform known as NIMA to quell the black market and controlling interest rates.

Back in December 2019, Hemmati had said that the country’s forex market was re-stabilized after a turbulent year.

The official said that despite the continued pressure from U.S. sanctions, the country’s non-oil exports continue to rise and the Forex Management Integrated System, locally known as NIMA, is supplying the importers with their required foreign currency.

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Making the remarks on the sidelines of a cabinet meeting on Wednesday, Abdolnaser Hemmati, CBI governor, said China and Russia have informed that Iran’s will to not joining FATF would create problems in the way of banking transactions between Iran and these countries.

Asked about the possibility of U.S. pressures tightening after Iran joins the task force, Hemmati said, “There are some standards in international banking transactions which are set by the FATF, and joining the FATF not only does not create any barriers for Iran but makes its transactions more transparent and smooth.”

“We have nothing to worry about. We are following anti-money laundering rules and regulations very seriously,” the governor added.

Earlier on Monday, Government spokesman Ali Rabiei said the government will support any decision the Expediency Council and the Guardian Council make on the fate of the FATF-related bills, but argued that Iran’s interests will be secured by not exiting the FATF.

The Iranian parliament ratified the FATF in October 2018. However, the oversight Guardian Council rejected the bill.

The Paris-based Financial Action Task Force said on October 18 that it has given Iran a final deadline of February 2020 to tighten its laws against money laundering in compliance with the global watchdog’s financial standards.

“If before February 2020, Iran does not enact the Palermo and Terrorist Financing Conventions in line with the FATF Standards, then the FATF will fully lift the suspension of counter-measures and call on its members and urge all jurisdictions to apply effective counter-measures, in line with recommendation 19,” the FATF said in a statement, Reuters reported.

One of the actions Iran is required to take to appease the FATF is to ratify the CFT, the convention combatting the financing of terrorism.
The government is pushing for the approval of the FATF.

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According to CBI’s official website, during the meeting, it was decided to launch the long-awaited system in two weeks.

Integrated Forex Deals System — Nima — is a platform where exporters sell their currency earnings to companies importing non-essential goods.

The new deal system’s activity is expected to have a positive effect on the foreign currency market and help calm the foreign exchange market’s fluctuations.

Iran’s market has been experiencing fluctuations in the value of foreign currencies and gold coin prices since summer 2018.

The unified currency market can handle and ease the flow of money to and from banks and currency exchange stores.

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The statement also notes that CBI Governor Abdolnasser Hemmati has canceled his trip to Washington for 2019 IMF Spring Meetings due to his ‘busy schedule’.

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Recommendations of the Financial Action Task Force (FATF) are among the international banking standards, he added.

One point should be taken into consideration on the Money and Foreign Exchange Market, he said, adding, “in recent weeks, concerns had been raised about the maturity of 20% special deposits of banks and the likelihood of entry of a percentage of it to the FOREX Market.”

With the drastic measures taken in this field and with the cooperation of chief executives of banks, the said issue was managed optimally, Hemmati reiterated.

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