CBI Loans for Agro Purchase

President Hassan Rouhani’s Cabinet has authorized the Central Bank of Iran to allocate 9 trillion rials ($240 million) worth of loans to the Central Organization for Rural Cooperatives of Iran through agent banks for “the mutually consented and guaranteed purchase of agricultural products”.In the directive, signed by First Vice President Es’haq Jahangiri, the Planning and Budget Organization of Iran has been obliged to guarantee the original amount plus the interest for the loans, Banker.ir reported. The Cabinet notes that the government’s guarantee does not negate the lenders’ responsibility in charging the interest on the loans, meaning that CORC is obligated to repay the loans with interest at the time of their maturity.