Banks have given 5.5 trillion rials ($40 million) to help compensate losses in flood-stricken areas, according to the data released by the Industries Ministry.
Bank Refah allocated 1.7 trillion rials ($12.5 million) to Social Security Organization retirees, those covered by Imam Khomeini Relief Committee and the State Welfare Organization of Iran, shada.ir reported.
The interest- free loans include 8,500 loans worth 50 million rials a piece and 8,500 loans worth 150 million rials each.
Bank Sepah paid 1.2 trillion rials ($9 million) in low-interest loans to people in the flood-stricken regions.
Agri-bank has already paid 200 billion rials in compensation for flood damages to farmers in Mazandaran Province and Bank Mellat is obliged by a Cabinet decree to pay 1.1 trillion rials for rehabilitating damaged homes.
Tose’e Ta’avon Bank is to pay 11,000 interest free home loans worth 1, 2 trillion, including 4,000 loans worth 50 million rials and 7,000 loans worth 150 million rials each. Those eligible are being introduced to agent banks in coordination of Ministry of Cooperatives, Labor, and Social Welfare.
Earlier in April, the Money and Credit Council, a top financial decision-making body affiliated to the Central Bank of Iran, approved a decision based on which interest-free loans for agriculture sector will mature over seven years and housing sector in three years.
Insurance Issues
The report adds that insurance companies have so far paid 5 trillion rials ($37 million) in compensation for losses emanating from the extreme weather that killed at least 70 people and destroyed homes, farmlands, roads, and bridges, and displaced millions in 24 provinces.
Insurance firms are waiting for damage assessment reports to reimburse their remaining money.
A member of the High Council of Insurance - a major insurance regulatory body – said in April that barely 10% of the flood-affected people had property and farmland insurance.
Unprecedented heavy rains which began in late March caused flooding across the country, mainly in the northern and southwestern regions. At least 70 people were killed and thousands were displaced by the floodwaters.
The heavy rains imposed losses to the tune of 300 trillion rials ($2.2 billion), mainly to homes, farmlands, roads, bridges and power and water infrastructure mostly in the deprived areas.
The flood caused an estimate of 46.6 trillion rials ($340 million) in damages to the key agriculture sector, mostly in Golestan, Mazandaran, Lorestan, and Khouzestan provinces.
