Economy, Business And Markets

Parliament Bid to Help Manufacturers

Parliament Bid to Help Manufacturers
Parliament Bid to Help Manufacturers

A special fund will be established to provide liquidity for the manufacturing units, according to the head of parliament’s special committee for supporting national production.

The move is aimed at financing the manufacturers via providing loans, Hamidreza Fouladgar told Tasnim news agency on Friday.

“This is among the amendments proposed by the lawmakers to be included in the government’s plan of action to exit recession,” Fouladgar said.

If the proposed amendments to the action plan prove to be financially viable, they will be approved, said the lawmaker, who anticipated that the fund will help manufacturers cope with their financial problems, especially in alleviating their liquidity problems.

“Half of the government subsidies for manufacturers can be offered via this fund,” said Fouladgar.

The problems facing small and medium industries have recently attracted the attention of the government.

Since the new administration took office in 2013, it has tried to solve the problems faced by producers, especially in their access to capital.

More than three years ago, the dramatic fall of the rial to a one third of its former value aggravated manufacturers’ liquidity problems.

A combination of economic mismanagement and international sanctions led to a rush toward foreign currency investments, resulting in a 70-percent drop in the value of the Iranian currency and severe subsequent currency fluctuations.