10910
NDFI, EDBI Cooperation Will Help Boost Exports
Economy, Business And Markets

NDFI, EDBI Cooperation Will Help Boost Exports

The Export Development Bank of Iran (EDBI) plans to cooperate with the National Development Fund of Iran (NDFI) to boost export activities, an official said on Monday.
A memorandum of understanding is expected to be signed between the two sides by the end of the fiscal year (March 20). Thereby, the NDFI will deposit one billion dollars with the bank, stated EDBI Director Ali Salehabadi.
Depending on the potentials of the bank “the amount could increase further,” the banking official said at a press conference.
If carried out, the investment will help provide more financial services to export activities.

 EDBI Policies
EDBI officials say they adhere to three main policies which are in line with the ‘resistance economy’ – a set of guidelines introduced by Leader of Iran’s Islamic Revolution Ayatollah Seyed Ali Khamenei – and seek to reduce the country’s reliance on oil exports
EDBI was established with the vision to promote exports; specifically non-oil based exports, and has been offering diverse foreign exchange and international banking services.
Development banking does not focus on businesses it rather uses financial resources in the sectors which can eventually promote economic growth.
Firstly, exports must be economically justifiable, a fact that is even more important than the profit exports will yield.
“Although profit is important, it is only the second priority of the bank,” Salehabadi said, clarifying that the top policies are to mainly provide loans to manufacturing and industrial units.
The third priority is to finance other development projects which do not fall under the first and second priorities, he added.
On sanctions, the official said that “whether sanctions remain the same, are intensified, or lifted the EDBI is prepared for all three scenarios.”
If sanctions are lifted the methods which the bank intends to apply are to resume cooperation with top international banks and introduce fresh visions for entering new target markets, he explained.
 Development Banking
Development banking mainly focuses on manufacturing, which can also yield profits, the official said.
Development banking also needs its own exclusive set of regulations. Currently all banks follow the same regulations, as an example, the interest rates set by the Central Bank of Iran are the same for all banks regardless of whether they are commercial or specialized, he noted.
The structure of development banks such as EDBI or Bank of Industries and Mines however is completely different from that of commercial banks. A number of workgroups consisting of specialized banks have thus been created and are operating to formulate specialized regulations exclusively for development banks.
Development banks face two major problems as they need to deal with market risks and rising NPLs or non-performing loans at the same time.
The official stressed that it is necessary to create committees specialized in increasing the capital of development banks with the support of the government and parliament.

Short URL : http://goo.gl/kUzPW3

You can also read ...

President Rouhani Officially Inaugurates Tabriz 2018
A glittering ceremony attended by President Hassan Rouhani was...
E-Jing GT electric sports car concept
The Beijing International Automotive Exhibition is a barometer...
Audi Recalling 1.16 Million Vehicles
Volkswagen AG’s luxury unit Audi said on Tuesday that it was...
Bank Branches Shrink
Iranian banks have shrunk by 0.3% in the previous quarter...
While Iran currently produces about 400,000 tons per year of aluminum, consumption is around 600,000 to 700,000 tons.
Iran is on track to launch a new aluminum smelter early next...
A host of high-level officials, including several ministers, CBI Governor Valiollah Seif and two deputies of President Hassan Rouhani were present at the meeting on April 25. 
Iran’s First Vice President Es’haq Jahangiri on Wednesday...
In its meeting on Tuesday, the Money and Credit Council, headed by CBI Governor Valiollah Seif, approved further cuts to interest rates levied on Housing Savings Account.
Iran's highest financial decision-making body has approved...
Pensions Account for Biggest Share of Treasury Payments
Payments to the Civil Servants Pension Organization accounted...

Trending

Googleplus