Business And Markets

$225m Loan for Agriculture, Industries

$225m Loan for Agriculture,  Industries
$225m Loan for Agriculture,  Industries

The Cooperative Development Bank (Tose'e Ta'avon Bank) has granted 6 trillion rials loan facilities during five months since the beginning of this Iranian year (starting March 21, 2014).

CEO, Ali Sahmani, said in a press meeting on Sunday that the bank facilities were largely given to projects related to agriculture, industries, and mines.

"Our facilities mainly target the production sector, and aim at increasing the capital inflow of enterprises," Sahmani added that the bank is willing to develop and raise its capital - with the help of government.

In the recent economic plan of action proposed by the government, it was suggested that banks' non-current liabilities are converted into current assets, to enhance their lending power.

Commercial banks suffered because of lack of proper management by the former government together with being shaken by illegal international sanctions imposed to the country.   

Sahmani hoped that the government will allocate some grants to increase the bank's capital. But regarding what was specified in the plan of action, it is a question whether government meant to actually raise the capitals of banks or the adopted policies for helping banks have a different nature.

The Cooperative Development Bank, described by the official as a disciplined organization with least deviation from central bank regulations, has a capital volume of 5 trillion rials which the bank hopes will increase five-fold in near future, Sahmani said.

However, the bank is enjoying a favorable financial situation, added the official. "It has not made any overdrafts from the CBI, nor is it indebted to it."

Bank deposit resources amount to 30 trillion rials, its assets exceed 4 trillion rials according to Sahmani.

The Cooperative Development Bank's budget is funded from its deposits, making agent contracts in mining and agriculture, contracts in rial and foreign currency, financial revenues raised from its investments and savings.

The objective of the bank was stated by Sahmani as developing cooperation among its customers who mainly include cooperatives, cooperative unions, and cooperative members.