Economy, Domestic Economy
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$53m in Loans for Nomads

$53m in Loans for Nomads$53m in Loans for Nomads

National Development Fund of Iran, the sovereign wealth fund, is increasing its support for Iranian nomads through the Iranian Nomads Organization.  NDF, which invests Iran’s saved up petroleum earnings, is extending 2 trillion rials (about $53 million at market exchange rate) in cheap loans to nomadic tribes, IRNA reported. “This year’s loan amount is a step up from the prior year, when 1 trillion rials were set aside for lending to nomads, 75% of which have been lent,” said Karamali Qandali, INO’s chief. The money will be lent as five-year loans with a 4% annual interest, like last year. The loans are significantly cheap. Currently, banks lend money at upwards of 20% interest and government bond yields are over 21% per annum. Iran’s nomads produce meat and dairy products, along with handicrafts.  According to Qandali, they account for a quarter of Iran’s red meat production.  INO is a government organization that seeks the development of nomadic standard of living, with loans, education programs and technical assistance.

 

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