CBI Throwing Auto Industry Lifeline Worth $612 Million

The Central Bank of Iran has allocated 150 trillion rials ($612.24 million) in aid packages and loans to the auto sector to help bolster productivity and localization efforts, the CBI chief said.
Abdolnasser Hemmati added that of the total sum, CBI’s Money and Credit Council, Iran’s top monetary decision-making body, has earmarked 50 trillion rials ($204 million) to be directly lent to automakers from bank reserves, IRIB reported.
He said the remaining would be 100 trillion rials ($408.16 million) worth of Murabahah bonds—an Islamic financing structure in which the seller provides the cost and profit margin of a commodity—and Productive Credit Certificate, also known by its Persian acronym Gam.
Gam is a financial instrument newly developed by CBI to help meet the funding needs of credible and productive manufacturing units and businesses. The instrument is described by the bank as a “market-oriented instrument that can be traded in money and capital markets.”
During a visit to IKCO on Sunday, Hemmati said the aid package can support auto production from raw materials to sale.