EghtesadOnline: The Export Development Bank of Iran has devised a package of incentives to support major exporters, entrepreneurs and manufacturers, the bank’s director for branch affairs and marketing announced.
“The measure is in line with our responsibilities as the eximbank of Iran to contribute to the growth and development of non-oil exports, since it was mandated in the Sixth Five-Year Development Plan (2017-22) and the policies of Resistance Economy,” Habib Ahmadi was also quoted as saying by IBENA.
Resistance Economy’s tenets, promoted by Leader Ayatollah Seyyed Ali Khamenei, seek to reduce reliance on oil revenues and prop up domestic production. These tenets were encouraged, especially after cheap imports during the two terms of the former administration (2005-13) greatly damaged national industries at a time of soaring oil prices.
The EDBI official noted that the selected exporters and entrepreneurs will benefit from a 0.5% interest rate cut on loans, in addition to other rewards, Financial Tribune reported.
The bonus comes on the back of already ultra-low lending rates reserved for non-oil exporters.
“The loans will be provided from the joint resources of EDBI and the National Development Fund of Iran [the country’s sovereign-wealth fund],” he added.
In August, the bank announced that it is set to dole out loans worth 3 trillion rials ($78.7 million) through NDBI to boost the export of industrial and mining products.
Curtailing the duration of reviewing loan applications of exporters to 10 working days was also mentioned by the EDBI official as another incentive.
Ahmadi noted that national exporters are asked to provide minimum guarantees for their loans while they also benefit from being a VIP member of EDBI’s Customers Club.
He explained that the bank also offers specialized consultancy to exporters and allocates credit lines to their foreign customers for expanding the volume of non-oil exports to targeted markets.
“We also issue different kinds of foreign exchange guarantees for selected exporters of technical and engineering services in the shortest possible time,” he added.
The official hoped that along with expanding the bank’s international correspondent relations, incentive packages and appropriate finances to exporters will help the country achieve its macroeconomic goals.
Ahmadi also announced that the total amount of loans allocated by EDBI in the last two years has almost doubled.
“As of March 21, 2015, the total amount of allocated loans reached 89 trillion rials ($2.33 billion), which currently stand at 175 trillion rials ($4.6 billion),” he concluded.