The National Development Fund of Iran has signed a new deal with the country’s eximbank to dole out 2 trillion rials ($46 million) of joint resources as loans to meet the working capital needed for industrial exports.
Half of the aforementioned funds belongs to NDFI while the other half has been provided by the Export Development Bank of Iran, EDBI’s news website reported.
According to the report, the interest rate on loans has been set at 14.5%.
EDBI will get 18% interest rate for its share of resources while NDFI’s interest rate is limited to 11%.
If an eligible individual asks for a loan, his/her share in the company at the time of request should not be less than 20% of the firm’s entire shares. Ordinary persons, private and corporate legal entities, as well as non-governmental public corporations, can also receive a loan.
As cited in the report, only institutions and companies where over 80% of the shares belong to real individuals can apply for a loan from the new resources.
But if more that 20% of a company’s board of directors have been selected by state officials, the company cannot apply for the credits. However, having foreign shareholders does not bar a company from receiving the export loans.
EDBI has been tasked with contributing to the development of non-oil exports by allocating cheap loans and other facilities, since it was mandated in the Sixth Five-Year Development Plan (2017-22) and the policies of Resistance Economy.
Resistance Economy’s tenets, promoted by Leader Ayatollah Seyyed Ali Khamenei, seek to reduce reliance on oil revenues and prop up domestic production. These tenets were encouraged, especially after cheap imports during the two terms of the former administration (2005-13) considerably damaged national industries at a time of soaring oil prices.
Add new comment
Read our comment policy before posting your viewpoints