Bank loans

Bank loans to economic sectors up by more than 51% in 5 months

TEHRAN – Iran’s banking system has disbursed 9.007 quadrillion rials (over $214.47 billion) in facilities to domestic economic sectors in the first five months of the current Iranian calendar year (March 21-August 22), registering an increase of 51.3% compared to the same period the previous year, IRNA reported.

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

As noted, working capital loans disbursed to different economic sectors during the mentioned five months were over 6.103 quadrillion rials (approximately $145.3 billion), accounting for 67.8% of the total facilities provided.

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

Last July, the CBI announced that over 4.976 quadrillion rials (over $118.4 billion) in facilities had been disbursed to various economic sectors in the first three months of the current Iranian calendar year (21 March-June 21), registering an increase of 71.3%. increase compared to the same period of the previous year.

According to CBI, the country’s banking system offered 18.989 quadrillion rials (about $452.1 billion) to domestic economic sectors in the previous Iranian calendar year of 1399 (ending March 20), or 94.8 % more than the previous year’s figure.

CBI has identified production support as one of its main plans for the past two years.

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

In early May 2019, Hemmati described CBI plans to neutralize or mitigate the impact of US sanctions on the country’s economy and mentioned providing liquidity and working capital to maintain and boost domestic production as one of these plans.

CBI’s plans take two main approaches, one of which is to secure funding for production activities and also to provide the necessary working capital for these activities.

EF/MA