Economy, Business And Markets

Lending to Small Manufacturers

Lending to Small ManufacturersLending to Small Manufacturers

Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh has proposed a plan to financially help smaller industries. In a letter to the Money and Credit Council—the body in charge of setting monetary policy, he suggested that the name of small and medium manufacturers who manage to repay part of their liabilities be removed from the list of debtors with overdue claims. Currently banks refuse to give money to entities with liabilities. Approving such a proposal can be of great help to smaller production units to tackle their financial issues, making them eligible to receive funds from lenders. Many of these companies are unable to repay their debt due to recession. Nematzadeh proposes that additional loans can help these companies return to growth and repay the rest of their debt. According to Mehr News Agency, the minister’s letter is in fact a guideline on how to give priority to smaller manufacturers when it comes to debt repayment. Nematzadeh believes due to more limited assets and greater vulnerability, smaller industries are in need of more support. Therefore providing them with financial assistance should be on the government’s agenda.