The Central Bank of Iran is planning to increase “Productive Credit Certificates”, known by its Persian acronym Gam, from 260 trillion rials ($797.5 million) now to 2,000 trillion rials ($6.13 billion), the CBI governor said.
"CBI’s goal is to channel liquidity towards production…We want to diversify financial instruments and issue more credit instruments because such instruments have no inflationary impact," IBENA quoted Ali Salehabadi as saying during a meeting with provincial officials and the private sector in Fars Province.
Gam is a market-oriented financial instrument that can be traded in the money and capital markets. Lenders assist credible businesses by offering tradable credit certificates similar to LCs. The certificate can be given to suppliers of raw materials, machinery and equipment.
Like bonds, certificates have maturity dates. The supplier can cash the certificate by selling it in the stock market but money is not exchanged between the beneficiaries.
October 21, 2022 19:24
0
Gam Credit Instrument Playing Enhanced Role
Gam is one of the integral components of the government’s policy to implement supply chain finance (SCF). The CBI recently revised guidelines to make the best use of Gam within the SCF scheme
You can also read ...
Add new comment