Economy, Business And Markets

Steel Firms Bargaining With CBI

Steel Firms Bargaining With CBI
Steel Firms Bargaining With CBI

The Steel Producers Association is in bargain talks with the Central Bank of Iran amid the growing burden of debts and liquidity shortage shouldered by steel firms.

“Some portion of the revenue generated out of implementing the Subsidy Reform Plan was supposed to be allocated to support steel producers. However, the decision is yet to be implemented, unfortunately,” said Bahram Sobhani, board member of the association.

Although several solutions have been put forward by the association, no concrete results have been achieved so far as the CBI has laid special conditions to accept them, he added.

In response to the association’s proposal to reschedule banking facilities’ repayment, the central bank promised to waive late payment penalties provided that the borrowers make up the whole arrears in one lump sum.  The solution, however, is not “affordable” by the steel firms in debt as “they have no money to repay their arrears let alone making lump-sum repayment,” Sobhani said.

The CBI’s green light to extend arrears repayment will enable steel producers to apply for new banking facilities. Sobhani said he hoped that the ongoing negotiations bear fruits helping to solve a large of problems faced by the steel producers.