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40% Increase in Loans to Mining Sector

40% Increase in Loans to Mining Sector40% Increase in Loans to Mining Sector

The industry and mining sectors managed to attract more than 907 trillion rials of banking facilities during the first 11 months of the past Iranian year (ended March 20), based on a report issued by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).

According to IMIDRO, the figure is up nearly 40 percent compared to the similar period a year earlier in which the banks had provided the industry and mining sectors with 649 trillion rials of facilities and loans.

The report also says some 81% of the facilities offered by the banks were allocated to the working capital. The industrial and mineral manufacturers have been complaining about the lack of liquidity, describing it as their biggest challenge.

Despite problems related to liquidity shortages, the mining sector has had the highest growth among different sectors such as agricultural and oil, registering a 10.7% growth during the first three quarters of the past Iranian year, based on official statistics published by the Central Bank of Iran. The mining sector growth is almost three times higher than the average GDP growth during the nine-month period.

The report adds that the GDP growth during the period was 3.5% and 8.1% in agriculture and oil sectors respectively. The growth in the mining sector comes after growth was -3% at the end of the Iranian year 1392 (ended March 20, 2013).

Caption: The industry and mining sectors received 907 trillion rials of banking facilities during the first 11 months of the past Iranian year.

 

Financialtribune.com