Leap in Working Capital Loans
EghtesadOnline: The total amount of loans allocated to the services sector by Iranian banks in the first seven months of the fiscal year to October 22 has been more than five times the amount of loans handed out to the agriculture sector, a report by the Central Bank of Iran indicates.
In its latest report published on its official website containing data which will prove useful to monetary policymakers and experts, the central bank highlights the share of loans given as working capital.
The document which identifies sectors of the economy that were subject to loans in the first seven months of the current fiscal year, reports that in the aforementioned period, the share of loans paid as working capital in all sectors of the economy stood at 1.82 quadrillion rials ($56.7 billion). That amount accounts for 65.5% of all loans during the period.
The figure shows a 662.5 trillion ($20 billion) or 57.1% increase in the volume of working capital loans compared with the corresponding period last year.
As cited in the report, the share of working capital loans issued to help stimulate industries and mines was 664.9 trillion ($20.7 billion) which equals 36.5% of all the credits given for helping the working capital of businesses.
From the 786.2 trillion ($24.4 billion) loans given to the industries and mines, reports the central bank, 84.6% or 664.9 trillion rials ($20.7 billion) has been for working capital that shows the importance of bankrolling the sector by the banks and the level of attention they pay to the sector, according to Financial Tribune.
In terms of the number of loans, 166,807 were allocated to industries and mines, which is relatively small when compared to the 2,263,072 loans given to the services sector. This indicates that in the initial seven months of the current fiscal year, services sector received more than 13 times more loans.
Banks allocated loans to the services sector more than five times than what they paid the agriculture sector, 1.5 times more than the amount given to the industries and mines sector and 4.5 times more than the amount handed out to the key housing sector, an analysis by bourspress.com concludes.