The National Coronavirus Headquarters has extended by one week the shutdown of all non-essential shops, i.e., Group II, III and IV businesses, in the high-risk red and orange zones for coronavirus transmission, Qasem Noudeh-Farahani, the head of Tehran Chamber of Guilds, said on Friday.
“Tehran’s Grand Bazaar will also remain closed for another week starting Saturday to contain the spread of Covid-19 infections,” he was quoted as saying by Fars News Agency.
Notably, only businesses categorized as Group I, including bakeries, supermarkets, grocery stores, car dealerships, chain stores, health and treatment centers, pharmacies, factories, transportation companies, parking garages, military bases, post offices, internet service providers, press, nursery homes and print shops, are allowed to provide essential goods and services.
82% of Businesses Abide by Health Protocols
Based on recent figures collected by Iran Chamber of Guilds, 82% of Iranian businesses and sales outlets on average abide by the regulations and health protocols set by the National Coronavirus Headquarters, secretary-general of the chamber said on Wednesday.
“In some provinces, the figure has declined to between 50% and 60%. Owners of outlets not conforming to protocols preventing the spread of Covid-19 have been reprimanded and received warnings,” Mohammad Baqer Mojtabaei was also quoted as saying by the Islamic Republic of Iran Broadcasting.
So far, the official added, more than 3,000 sales outlets have been shut down across the country for flouting the protocols and regulations set to curb the pandemic.
“Unfortunately, the pandemic has prolonged for more than a year and a half, longer than expected, and to top that, the government has failed to support businesses as it should have during this period. These have made it especially hard for most businesses to keep up with new pandemic protocols since they have rents and other expenses to pay.”
The official concluded that Iran Chamber of Guilds implores businesses and people to keep observing Covid-19 protocols until the fourth wave of the pandemic is over.
The fourth wave of the disease emerged soon after the Iranian New Year holidays (March 21-April 2) prompted the government to announce new lockdowns. Over 2.3 million people have been infected with the new coronavirus in Iran so far.
Over $12b in Losses
Businesses affiliated to Iran Chamber of Guilds have suffered as much as 3,000 trillion rials (over $12 billion) in losses since the beginning of the coronavirus pandemic, Mojtabaei said.
“However, only 7% of them applied for the loans backed by the government under Covid-19 relief assistance to businesses program during the first quarter of last fiscal year (March 20-June 20, 2020),” he was quoted as saying by ISNA.
Noting that the volume of loans were negligible — 120-160 million rials ($480-$640) for each worker, with a maximum of three workers per enterprise — in relation to the losses suffered by guilds, Mojtabaei said, “The 12% lending rate was another reason behind the lukewarm reception toward the government’s relief loan program. As the benchmark interest rate in Iran is at 18%, business owners believe that the government’s 6% interest rate subsidy is not worth the difficult application process and length of time it would take to receive the loan.”
Iran Chamber of Guilds recently issued a statement expressing concerns regarding the economic implications of the new surge in Covid-19 cases, Mehr News Agency reported.
“Official figures suggest an increase in the number of new infections due to the decline in compliance with Covid-19 safety protocols during the Iranian New Year holidays. More cities and counties are falling in the high-risk red zone for coronavirus transmission, hence widespread closures of businesses are likely to ensue,” the statement read.
“If more cities, including Tehran, Karaj and Isfahan move into the red zone of the country’s color-coded coronavirus framework, more than one million businesses affiliated to ICG will shut down and three million people will become jobless.”
