EghtesadOnline: Loans by banks and credit institutions reached 14,828.9 trillion rials ($52.9 billion) in the first seven months of current fiscal year (March 21-Oct 22).
Lending increased 5,474.2 trillion rials ($19.5b) on the corresponding period last year, indicating 58.5% annual growth, the Central Bank of Iran said.
Close to 67% of the loans were for increasing working capital given to assorted sectors, with mines and industries at the top.
Loans for boosting working capital of mineral and industrial companies reached 3,476.6 trillion rials ($12.4b) accounting for 35.1% of the total loans given for working capital across the economy.
Higher working capital loans indicate the priority lenders give to the liquidity needs of businesses. It also reflects their concern about the viability and solvency of manufactures struggling due to the mounting economic challenges.
Apart from working capital, other loans were for creating and expanding business, repairs/renovation and buying homes.
Banks gave 1,650 trillion rials ($5.8b) for setting up new businesses, accounting for 11.1% of the total lending. Loans for expanding business stood at 1,239 trillion rials ($4.4b) and repair/renovation 305 trillion rials ($1.08b).
Likewise, 948.9 trillion rials ($3.4b) was borrowed for purchasing goods and homebuyers got 189.5 trillion rials ($676m). Miscellaneous loans were reported at 577.6 trillion rials ($2.06b).
In terms of overall economic sectors, a big portion of banking resources went to the services sector with 6,411.5 trillion rials ($22.8b) or 43% of the total.
Lending to mines and industries sector was 4,397.6 trillion rials ($15.7b). The commercial sector attracted 2,232.1 trillion rials ($7.9) or 15% of the total.
As often, agriculture and housing were at the bottom end. A total of 1,030 trillion rials ($3.6b) was injected into the agriculture sector while the housing and construction industry borrowed 754.7 trillion rials ($2.7).
The CBI said despite the rise in lending, effective measures need to be taken to curb the inflationary impact from the rising demand for goods.
Addressing the financial needs of companies is a priority of banks as the government struggles to save jobs, mitigate the colossal damage from Covid-19, improve domestic production and cut imports.
Iran's banks injected more than 18,989.2 trillion rials ($67b) into the economy in the last fiscal year (ended March) -- up 9,239.3 trillion rials ($35.5b) or 94.8% compared to the year before.