Business And Markets

Loan Relief for Businesses

Loan Relief for Businesses
Loan Relief for Businesses

As part of the government's plan to support businesses battered by the Covid-19 pandemic, banks and credit institutions have been told to be flexible regarding delays in the repayment of loans.
The Central Bank of Iran Sunday informed lenders of decisions taken by the taskforce to curb the devastation caused by coronavirus. Businesses that could not repay their installments in the first four months of the current fiscal year (started March 20, 2021) can now do so at the end of the set repayment period without penalties.
The measure only includes loans paid as a part of the government's Covid relief plan, and loan takers should have no unpaid installments as of Feb 21, to be eligible for the moratorium.
The fourth wave of the disease emerged soon after the Iranian New Year holidays in early April, prompting the government to announce new lockdowns.
As a result, all non-essential businesses, i.e., Group II, III and IV were forced to shutter as large numbers of cities and towns were put in the high-risk red zone.
 A total of 92,120 billion rials ($382 million) in loans have been paid in the form of coronavirus relief package to struggling  businesses.
As per the government program, businesses that have been hurt directly and had to close will receive 160 million rials [$663] for each worker and those that did not shut are eligible for 120 million rials [$497] for each worker. The lending rate is 12%.
According to a study by the Iran Chamber of Guilds, on average  82% of businesses and retail outlets complied with regulations and protocols set by the National Coronavirus Headquarters.
The pandemic has hit a wide range of businesses in Iran since its outbreak in Feb 2020. The CBI released a list of business sectors eligible for the virus loans, namely food suppliers, restaurants, transport companies, apparel producers and distributors, gyms and recreational centers, education and cultural centers, craftsmen and handicraft shops.


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