To complete semi-finished projects, Minister of Industries, Mine, and Trade Mohammad-Reza Nematzadeh told industrialists to start trade partnership and open credit lines (LC) in lieu of waiting for the banking system to provide them with facilities, according to Mehr news agency on Tuesday.
While the industrial sector is short of cash, domestic banks have locked their coffers, forcing industrialist applicants to stand in long queues to receive facilities, the minister said. Nematzadeh advised industrial units to open new avenues of financing their projects, such as opening LCs or finding trade partners, since the banking system does not seem to have the capability of meeting their needs.
In the wake of growing problems faced by the domestic manufacturers as well as the industrial sector due to a shortage of funds and cash flow, the parliament proposed an urgent bill last year to establish a special fund in support of national production. The loans received from this fund are channeled by the manufacturing and industrial sector towards their energy costs, tax liabilities, insurance premiums and personnel salary (the running costs).
