Business And Markets
0

Some Help for Needy Families

Some Help for Needy Families Some Help for Needy Families

The Central Bank of Iran said the government's 10-million-rial ($62) was paid to nearly 17 million heads of households in need by Tuesday -- part of a scheme to help low-income families partly deal with the economic impact of COVID-19 pandemic. 
As per the measure, those who are receiving cash subsidies every month are eligible for the interest-free loan. The repayment will be in 30 installments and is set to be deducted from the cash subsidies. The government has considered a two-month grace period for the repayment.
Initially the loan was to carry 12% interest, but President Hassan Rouhani said later that “the government will foot the interest bill,” following strong public backlash.
With 1,168 new infections on Friday, the total number of covid cases in Iran reached 88,194. According to Health Ministry, so far, 5,574 people have died. More than 66,500 have recovered and discharged from hospital.
The government has prepared a package a 1-quadrillion-rial ($6.2 billion) package to help people and businesses who in the past two months have suffered the ramifications of the deadly disease.
According to the president, one-fourth of the amount is earmarked for supporting healthcare and the Unemployment Insurance Fund. 
Nearly 520 trillion rials ($3.22 billion) will be allocated to 10 jobs most affected by the contagion and the remaining 230 trillion rials ($1.42 billion) will fund the government’s interest-free loan of 10 million rials to families covered by the subsidy reform plan.

 

Incomes Halved 

According to a recent poll, the virus has reduced the income of more than half of the Iranian population. 
About 600,000 people who have lost their jobs, mostly in the services sector, filed for unemployment benefits in the past three weeks. 
The outbreak of the virus and government's restrictive measures to contain its spread has had a major negative impact on the national economy and businesses across the board.
Surveys show 15% of the economy will be affected by the deadly virus. Market analysts say the harm would be higher as recession sets in and people prefer to be more careful with their money in time of crisis.
The so-called "low-risk" businesses affiliated to Tehran Guild Chamber reopened on April 18 as per the so-called ‘Smart Distancing” plan to tackle the COVID-19 outbreak while minimizing its fatal economic fallout.

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com