IKCO, Local Bank Collaborate to Boost Auto Parts Localization

Iran’s Bank Tejarat has decided to lend 1.5 trillion rials ($6.38 million) to the major automaker Iran Khodro Company (IKCO) to boost localization.
Based on the recent agreement between the two entities, the bank agreed to pay the financial facility by the end of the current fiscal year (March 2022), the automaker’s website Ikcopress.ir reported. 
IKCO's CEO Farshad Moqimi said Bank Tejarat is the company's financial strategic partner, stressing that the financial assistance can help localize auto parts manufacture and increase the sector's net working capital.
“The bank has also agreed to issue a specific amount of Productive Credit Certificates to the carmaker to help oil the industry's wheels,” he added, hoping that the pact will encourage automakers and parts manufacturers to expand their operations.
Also known by its Persian acronym Gam, Productive Credit Certificates are a financial instrument newly developed by the Central Bank of Iran to help meet the funding needs of manufacturing units and businesses.