A total of 92,120 billion rials ($382 million) worth of loans have been paid to the applicants of the government’s coronavirus relief package for businesses hurt by the outbreak of Covid-19, an official with the Ministry of Cooperatives, Labor and Social Welfare said.
“Registration for coronavirus loan started at Kara.mcls.gov.ir on May 9, 2020. Thus far, 513,545 applications, including 953,581 jobs, have been submitted. The total value of loans requested stands at 176,770 billion rials [$733 million], of which 92,120 billion rials [$381.92 million] or 67% have been paid,” he was quoted as saying by IRNA.
Noting that the taskforce to combat economic consequences of coronavirus expected loan applications worth 200,000 billion rials ($829.18 million), the official said, “As per the government’s coronavirus relief package, businesses that have been hurt directly and closed down by Covid-19 will receive 160 million rials [$663] for each worker and those which were not shut down are eligible to receive 120 million rials [$497] for each of their workers. The lending rate of these loans is 12%.”
“Businesses affiliated to Iran Chamber of Guilds have suffered losses worth 3,000 trillion rials [$12 billion] since the beginning of the coronavirus pandemic,” Mohammad Baqer Mojtabaei, secretary-general of the chamber, says.
“However, only 7% of them applied for the loans backed by the government under the Covid-19 relief assistance program for businesses 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 was negligible (120-160 million rials ($480-$640) for each worker and up to a maximum three workers per enterprise) in relation to the losses guilds have suffered, Mojtabaei said, “The 12% lending rate was another reason behind the lukewarm reception toward the government’s loan relief 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 credit.”
He made the remarks before provincial capitals were placed on red alert.
The Iran Chamber of Guilds recently issued a statement expressing concerns regarding the economic implications of a 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 [March 21-April 2]. More cities and counties are falling in the high-risk red zone for coronavirus transmission and 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.”
“The National Coronavirus Headquarters has extended by one week the shutdown of all non-essential shops, i.e., Group II, III and IV of jobs in the high-risk red and orange zones for coronavirus transmission,” Qasem Noudeh-Farahani, the head of Tehran Guilds Chamber, said on Friday.
“Tehran’s Grand Bazaar will also remain closed for another week, starting April 24, 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 shops, chain stores, health and treatment centers, pharmacies, factories, transportation companies, public parking garages, post offices, internet service providers, press, nursery homes and print shops, are allowed to provide essential goods and services.
Based on recent figures collected by Iran Chamber of Guilds, an average of 82% of Iranian businesses and sales outlets abide by the regulations and protocols set by the National Coronavirus Headquarters, secretary-general of the chamber, said on Wednesday.
“In some provinces, the figure declines to between 50% and 60%. Owners of outlets not conforming to protocols preventing the spread of Covid-19 have been reprimanded and received warnings,” Mojtabaei told 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 been drawn out 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,” he added.
Mojtabaei concluded that Iran Chamber of Guilds implores businesses and people to continue observing Covid-19 protocols until the fourth wave of the pandemic is over in the country.
The fourth wave of the disease emerged soon after the Iranian New Year holidays in early April, prompting the government to announce new lockdowns.
Over 2.3 million people have been infected with the new coronavirus in Iran.
