Based on a new approval by the Central Bank of Iran, banks are obliged to regard guaranteed purchase agreements for goods and services submitted by the private sector and buyback agreements signed with the relevant executive bodies as acceptable loan guarantees. The directive is based on Clause 11 of the Budget Law of this fiscal year that started March 21, the central bank website reported on June 14. The new instruction aims to facilitate and expedite investment contracts as well as encourage implementation of capital asset acquisition plans. According to ISNA, interest-free banks are excluded from the new approval.
