EghtesadOnline: Bank of Industry and Mine plays an effective role in boosting industries across the country through financing various projects and creating many job opportunities by opening lines of credit worth $11 billion as well as allocating more than 20 trillion rials ($532 million) of loans to small- and medium-sized enterprises , the bank’s website announced.
BIM’s performance after the implementation of the Joint Comprehensive Plan of Action (Iran’s nuclear deal with world powers) has been striking. Creating correspondent relations with 71 banks in 27 countries has paved the way for opening 267 lines of credit worth $1.3 million over the last fiscal year (March 2016-17) and securing money transactions for less than a tenth of the cost incurred during the sanctions period.
As a part of the stimulus scheme for SMEs, Bank of Industry and Mine has paid more than 22.5 trillion rials ($601 million) to 1,586 SMEs in 31 provinces, which helped improve their working capital and job safety. Isfahan accounted for the lion’s share of the loans, which was followed by Tehran and Qom.
Bank of Industry and Mine has embarked on financing cement production projects with the goal of meeting the domestic market’s demands and exporting products to neighboring countries. The bank has allotted 9.83 trillion rials ($260 million) of loans to six companies and created 1,356 employment opportunities, Financial Tribune reported.
The government had added 20 trillion rials ($519.8 million) to the BIM capital, increasing it to 60 trillion rials ($1.5 billion) which raised the bank’s capital adequacy ratio to 12%, IBENA reported. Based on the law passed by Majlis, the National Development Fund of Iran must reserve 10% of its foreign exchange income for allocation as loans to SMEs and non-government cooperatives. State banks will help allocate these loans.
Valiollah Seif, the Central Bank of Iran’s governor, earlier said 25,000 small- and medium-sized enterprises received 175 trillion rials ($4.6 billion) worth of loans “which not only safeguarded jobs, but also generated employment”. Bank of Industry and Mine, as a financial institution designed to fund new and upcoming businesses and economic development projects by providing medium- and long-term loans, often accompanied by technical assistance, is the most important organization that endeavors to boost economic growth through developing industries and mines.