Economy, Business And Markets

Loans to Boost Rural Co-ops

Loans to Boost Rural Co-ops Loans to Boost Rural Co-ops

Cooperatives in rural areas will be eligible for loans amounting to four times their deposit(s) with 3% interest rate, deputy to First Vice President Isha’q Jahangiri  said.

Speaking at an inauguration ceremony for civil development projects in Ahmadi town in Hormozgan province, the deputy for rural and deprived affairs Seyyed Abolfazl Razavi said, “The loans would have to be repaid over six to eight years and the subsidy cards of loan applicants will suffice as collateral,” IRNA reported.

Four development civil projects worth $835,000 were launched in the southern town in Haji Abad County on the northern end of Hormozgan Province off the Persian Gulf.

Razavi outlined the government’s rural development polices and plans after taking office in mid-2013 and said growth and development in the rural regions is a priority issue for the Rouhani administration. “The government is determined to economically improve the deprived areas.”

The governor general of Hormozgan said the government has delivered on its election pledges and fulfilled promises on supporting the deprived and undeveloped parts of the country.

“About half of the province’s residents dwell in rural areas and the government has been moving in the direction to help boost the quality of life in the villages,” Jasem Jaderi said.

He noted that a local mining cooperative will soon increase the number of workers, alleviate deprivation and enhance the welfare of locals in Ahmadi town.

Haji Abad County is located 165km north of Bandar Abbas, one of Iran’s major port cities. The county is also well known for quality dates and citrus fruits. Many natural and historical attractions can make it a potential paradise for tourists.

 Less Vulnerable

Compared to other private and government economic organizations and companies, the cooperative sector in Iran was much less affected by the multilateral economic sanctions imposed on Iran because of the nuclear dispute.

The cooperatives sector deals with the public at large and its economic health and progress is dependent largely on the domestic economy. Thus compared to the challenges macroeconomic and other key sectors were confronted with over the past years in the country, this sector has been relatively less harmed.

 Cooperatives is about team work and nurtures social responsibility among the masses, and recent reports said the economy of cooperatives is “reasonably steady and sustainable” and retailers, as an example, do not simply shut down their businesses in times of difficulties.

Developing knowledge-based cooperatives and harmonizing social groups can help create jobs while resources for cooperatives are normally provided by the communities themselves and rarely need  outside help like bank loans. This feature naturally spares them from bureaucracies and their affiliates.

Given the stellar performance and experience of cooperatives over three decades, especially in the rural areas, their status as enshrined in the Islamic Republic Constitution, and their contribution to economic and business growth, the government is not oblivious to the need for both the executive and legislative branches to pay more attention to cooperatives, especially in the rural areas.