Iran's SAIPA, Mellat Bank Sign Deal
Economy, Auto

Iran's SAIPA, Mellat Bank Sign Deal

Iran's second largest car producer, SAIPA Corp. and semi-private Mellat Bank signed agreements to increase credit lines, providing needed resources in the area of foreign exchange, opening letters of credit and providing bank guarantees for export, according to Akhbar Khodro, a local automotive website.
At a meeting, Hadi Akhlaghi Feiz Asar, the CEO of Mellat Bank, and Mehdi Jamali, the CEO of SAIPA, signed the new partnership deal which is likely to take effect from December 21.
Jamali said the auto manufacturing industry is a stimulator of the economy, which is why cooperation between the auto industry and the banking and finance sector must increase, the website reported.
A year-on-year comparison shows that production at SAIPA's manufacturing plants has grown by 53.2%; this has helped the economic growth of the country by almost 0.5%.
"This would not have come about without the support of the banking system," the SAIPA chief stressed.  
The growth of the auto industry will result in the growth of other related industries such as steel, textile, polymer and tires, Jamali added while noting that this will create jobs across the board.   
Due to Mellat's healthy capital and liquidity levels, he hoped the bank could assist with forex and give the company better credit facilities.
Manufacturers of car parts may also benefit from the Mellat-SAIPA deal that would help alleviate their financial conditions.
He added that with the help of the banking sector "we hope to remove obstacles that the small and large businesses are dealing with, and advance the development of the auto industry."
Akhlaghi, for his part, noted the performance of SAIPA and said the company's financial statements show the potentials of the auto group; therefore the banking sector is very eager to work with them.
"Mellat Bank sees it as a responsibility to help the auto industry and improve local production," he said.
"We are ready to help provide the needed resources for the long and short-term plans of SAIPA; we are ready to provide the required working capital."  

Short URL : https://goo.gl/UbtfvF
  1. https://goo.gl/2yWVqU
  • https://goo.gl/cjT0I1
  • https://goo.gl/Osq4Ke
  • https://goo.gl/rNjVxt
  • https://goo.gl/pzWcnT

You can also read ...

Iran Receives First Round of Post-Sanctions Finance From European Banks
In what were the first finance deals clinched with cautious...
68% of Non-Oil Exports Headed to 5 Countries
China, Iraq, the UAE, South Korea and India imported 68.7% of...
Indian Bank to Extend $150m for Chabahar Development
Iran is expected “very soon” to approach India’s Exim Bank...
TEDPIX soared by 3,459 points or 4.2% during the sixth month of the year–the highest monthly rise recorded so far this year.
Tehran Stock Exchange’s primary index TEDPIX gained 8,346.3...
Gold Coin Hits 3-Week Low
Gold coin prices are modestly down and hit a three-week low in...
Flat Steel Import Market Cools as Domestic Prices Drop
Import prices for flat steel materials cooled down in Iran in...
51.5% Rise in University Graduates
The findings of the most recent National Population and...
Roads and Urban Development Minister Abbas Akhoundi has...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.