The Ministry of Industries, Mining and Trade gave 19,000 trillion rials ($69.7 million) in loans to exporters of non-oil goods in the first four months of the current fiscal year that started in March.
Loans were paid to improve and expand target destinations as a part of an incentive package designed to boost the key non-oil export sector amid declining crude oil exports -- the lifeline of the economy, IRNA reported.
The support package is funded by the National Development Fund of Iran, the sovereign wealth fund. Aid will be given to eligible exporters via agent banks, including the Export Development Bank of Iran, Bank of Industry and Mine, Tose'e Ta'avon Bank, Middle East Bank, Karafarin Bank, Tejarat Bank, Bank Melli Iran and the Bank of Agriculture.
The loans are at 16% interest, less 2% on rates offered by banks as per Central Bank of Iran rules.
Grappling with US sanctions and the coronavirus pandemic, foreign trade authorities are striving to increase non-oil export and expand market share. In fiscal 2020-21 Iran exported to 143 countries and imported from 123.
Iran traded 50.8 million tons of non-oil goods worth $29 billion during the four months (March 21-July 22), indicating an increase of 21% in volume and 47% in value compared to the corresponding period last year.
According to Mehdi Mirashrafi, the head of the Islamic Republic of Iran Customs Administration, exports reached 38.3 million tons worth $14.3 billion -- up 27% and 65% in volume and value y/y, respectively.
Major exports included liquefied gas, polyethylene, semi-finished steel products, methanol, gasoline, steel ingots, liquid propane, bitumen and copper cathode.
The main export destinations were China (10 million tons of goods worth $4.3 billion), Iraq (10.9 million tons worth $2.8 billion), the UAE (4.3 million tons worth $1.6 billion), Turkey (1 million tons worth $923 million) and Afghanistan (1.8 million tons worth $728 million.)
Imports hit 12.5 million tons worth $14.5 billion, registering an increase of 5% in weight and 32% in value compared to the same period last year, ISNA reported.
Main exporters were the UAE (4 million tons worth $4.7 billion), China (1 million tons worth $3.1 billion), Turkey (1.3 million tons worth $1.5 billion), Germany (351,000 tons worth $563 million) and Switzerland (672,000 tons worth $539 million).
