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Hefty Gov’t Automotive Loan Embroiled in Technicalities

In February, the Iranian government and the Central Bank of Iran signed an agreement with local automotive companies to extend an €844 million loan to local auto parts makers, which has not yet been allocated
Hefty Gov’t Automotive Loan Embroiled in TechnicalitiesHefty Gov’t Automotive Loan Embroiled in Technicalities

The €844 million loan earmarked for local auto parts makers is yet to materialize, due to disagreements between automakers and state players, a deputy industries minister says.
In February, the Iranian government and the Central Bank of Iran signed an agreement with local automotive companies to extend an €844 million loan to local auto parts makers.
Farshad Moqimi added that due to disagreements among parts makers, car companies and government officials, the loan has not been allocated, IRNA reported
“The loan was to be delivered by June 21, but the deadline had to be extended,” he said.
Over the past few months, the two sides—carmakers and policymakers—have been at each other’s throat, as they differ over technicalities related to the repayment mechanism.

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