Iranian lenders granted loans worth a total of 25,432.9 trillion rials ($97.8 billion) to businesses in the course of eleven months since the beginning of current fiscal year (March 21- February 19).
Compared to the corresponding period of last year, bank loans increased by 9,009.2 trillion rials ($34.6b), indicating close to 55% growth, according to data published by the Central Bank of Iran.
As usual working capital loans grabbed the lion’s share of lending. As per the data, businesses took out 16,782.1 trillion rials ($64.5b) in loans to boost working capital, accounting for 66% of the total loans.
Borrowers in the mining and industry sector were the main recipients of working capital loans with 6,149.4 trillion rials ($23.6b), which account for 36.6% of the total working capital loans given to all economic sectors.
Mineral and industrial businesses borrowed a total of 7,765.6 trillion rials ($29.8b) in the 11 months. Granted working capital loans represent 79.2% of the total banking funds injected into the sector.
Apart from working capital, banks gave loans for other purposes, including for creating and expanding business, repairs/renovation and buying homes.
Banks gave 2,931.5 trillion rials ($11.2b) for setting up new businesses, 1,904.1 trillion rials ($7.3b) to expand businesses, 556.3 trillion rials ($2.1b) for repair and renovation, 1,799.2 trillion rials ($6.9b) for purchasing goods and 412.6 trillion rials ($1.5b) to homebuyers. Loans given to miscellaneous purposes amounted to 1,046.9 trillion rials ($4b).
In terms of overall economic sectors, a big portion of banking resources went to the services sector with 10,549.9 trillion rials ($40.5b).
The next major recipients were industries and mining sector (7,765.6 trillion rials) followed by commerce at 3,895.7 trillion rials ($14.9b).
As always, agriculture and housing sectors were at the bottom end. Farmers borrowed 1,765.5 trillion rials ($6.7b) and people and businesses active in construction sector took out 1,445.4 trillion rials ($5.5b).
