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$844m Needed for Rescuing Iran’s Cash-Burning Carmakers

Over 150,000 cars worth 100 trillion rials ($667 million) lie in the warehouses of local automotive firms since the companies do not have the required parts for completing them
$844m Needed for Rescuing Iran’s Cash-Burning Carmakers$844m Needed for Rescuing Iran’s Cash-Burning Carmakers

An aid package worth $844 million is needed for saving Iran’s two chronically struggling carmakers.
Deputy Industries Minister Farshad Moqimi told ICANA that over 150,000 cars are in the warehouses of local automotive firms, as they do not have the parts for completing the vehicles.
In February and under the Industries Ministry pressure, the Central Bank of Iran agreed to lend $844 million to help rescue the two dysfunctional car manufacturers, Iran Khodro (IKCO) and SAIPA, in hard currencies. 
Since then, the car companies and the CBI have been at loggerheads over the loan’s repayment mechanism. 

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