Productive Credit Certificate Gets Nod From MCC

The Money and Credit Council - a top body in charge of making monetary and banking decisions - approved a plan dubbed as the ‘productive credit certificate’ better known by its Persian acronym Gam. 
It was approved as part of the Central Bank of Iran’s measures to optimize management of liquidity injected into distressed manufactures, the CBI’s website reported. 
MCC approved the outlines of the plan two weeks ago. 
“The plan will pave the way to raise working capital of businesses with the help of guarantees provided by banks and credit institutions, and tapping the capacities of private sector,” the CBI said. 
Gam is a market oriented financial instrument that can be traded in money and capital markets.  As per the plan, lenders will help credible businesses by offering a tradable credit certificate similar to a LC.  The certificate should be submitted to suppliers of raw materials, machinery and equipment.