The Central Bank of Iran has issued a bylaw mandating all banks and credit institutions to approve three conditions before giving loans to economic entities, FNA reported Monday.
It has firstly directed commercial lenders to finance investment activities only if a quarter of the investment project’s overall expenses can be provided by its stakeholders.
Next, loans shall only be provided to firms whose equity is over 25 percent of their assets (after receiving the loan).
And finally, the bylaw proclaims that audited books of firms applying for loans need to be provided. Audits must have been carried out only by official members of the Iranian Association of Certified Public Accountants.
