Economy, Business And Markets

$7b Credit Line for Industries

$7b Credit Line for Industries$7b Credit Line for Industries

Having prepared the infrastructure for exiting recession, the ministry of industry, mine, and trade has opened $7 billion worth of credit line for industrial and manufacturing projects, deputy minister Hossein Abooei Mehrizi announced on Sunday.

Given the fact that international developments seem rather positive, the figure may increase in the current fiscal year, which started March 21, he said, referring to the nuclear framework agreement reached between Iran and the six world powers which seeks to resolve a 12-year nuclear dispute over Tehran’s nuclear power program.

The official was referring to the fact that international relations may expand if a final deal is reached between Iran and the P5+1 (the five permanent members of UN Security Council plus Germany) by the June 30 deadline.

President Hassan Rouhani has repeatedly pointed out the importance of boosting exports, thus manufacturing units potential to export products will be given priority in receiving loans, Financial Tribune’s sister news website Eghtesad News reported.  

With the assistance of the Bank of Industry and Mine and the National Development Fund of Iran, new measures will be taken for providing loans to industrial sectors, the official stated.

“As an example, plans are in place to activate the capital market and to offer Sukuk bonds (financial certificates like bonds which comply with Sharia or the Islamic law),” he added.

The deputy minister also said that if Iran’s ties with the world improve, the industry ministry plans to attract over $3 billion in foreign investment. In order to prepare the needed conditions for the scheme, “increasing added value in industrial and mining sectors is an indispensable prerequisite.”

The official asserted that in the current fiscal year, the main focus of the ministry will be to complete half-finished projects and enhance value chains.