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Industrial, Mining Sectors Need $59b to Survive

Industrial, Mining Sectors Need $59b to SurviveIndustrial, Mining Sectors Need $59b to Survive

Deputy minister of industry, mine and trade, Mohsen Salehinia, says the industry and mining sectors need 1,700 trillion rials (more than $59.5 billion based on official currency exchange rate) this year to stay afloat.

In the last Iranian calendar year (ended March 20), the sectors’ need for liquidity was 1,500 trillion rials, 1,030 trillion rials of which was provided by banks either through new loans or the extension of previous loans, according to the official. He added that lack of liquidity and financial resources is not only hurting the industrial and manufacturing units but also other sectors.

He warned that the shortage of liquidity will be more serious in the current Iranian year as the costs are growing for input materials, wages, and utilities.

Banking facilities and the funds raised from the so-called Subsidy Reform Plan are two sources of financing for the industry and mine sectors.

The official urged the manufacturers to take into consideration issues such as economic and technical feasibility and the necessary infrastructures before embarking on manufacturing, selling, or exporting their products.

“The manufacturing sector can thrive only through increased exports. As economic indices are promising in the steel, automobile, and home appliances sectors, more attention has to paid to these industries”, he noted.

Financialtribune.com