Economy, Domestic Economy

SMEs Guarantee Fund Expands

SMEs Guarantee Fund ExpandsSMEs Guarantee Fund Expands

The SMEs Guarantee Fund has increased its capital to 1.25 trillion rials ($35.4 million at market exchange rate) from a previous 500 billion ($14.1 million), IRNA quoted chief executive Ali Ta’aqoli as saying. The fund, which started working in 2006, is supervised by the Ministry of Industries, Mining and Trade. It helps small companies by guaranteeing up to 70% (85% in less developed areas) of the principal and interest of loans granted by lenders to companies. The fund has issued 459 guarantees worth 1.99 trillion rials ($56.4 million) to small- and medium-sized enterprises since its first guarantee issue in 2007.