Economy, Business And Markets

Agro Bank to Boost Lending

Agro Bank to Boost Lending  Agro Bank to Boost Lending

The state-owned Bank Keshavarzi Iran, specializing in financing the agriculture sector, will double its capital by the end of the current fiscal year (March 2017), said deputy minister of agriculture on Thursday. Abdolmahdi Bakhshandeh noted that an amendment to the budget law allows the government to inject 30 trillion rials ($953 million) into the bank, the news website reported. The capital increase aims to help Keshavarzi meet Basel Committee minimum capital requirement and boost lending. Bakhshandeh added that Keshavarzi alone accounts for 90% of farm loans adding that other lenders are not keen on funding the key sector. BKI currently offers loans at 15%, but the rate is 10% for farmers in the deprived regions.