$3b approved to prop up private, cooperative sectors
The Iranian administration has approved the allocation of $3 billion to provide domestic private sector manufacturers with their required capital to import raw materials and machinery.
The Central Bank of Iran has been obliged to draw $3 billion of its internal sources and offer to non-governmental producers (including the private and the cooperative sectors) through the Bank of industry and Mines as the acting bank, the Mehr News Agency reported on Friday.
Industries and Mines Minister Ali-Akbar Mehrabian said on Tuesday that a $2 billion credit line has been approved for the development of domestic industries.
The figure is in dollars and has been handed over to Bank of Industry and Mine to be used to meet a portion of the domestic industry''s needs, he said, the Islamic Republic of Iran Broadcasting reported.
The minister pointed out that following the issuance of this directive the Central Bank of Iran is obliged to secure the sum from its internal resources.
According to the Constitution, the economy of Iran consists of three sectors: state, cooperative, and private. The state sector is to include all large-scale industries, foreign trade, major minerals, banking, insurance, radio and television, aviation and transportation.
The cooperative sector includes cooperative companies and enterprises concerned with production and distribution, in urban and rural areas, in accordance with Islamic criteria.
The private sector consists of those activities concerned with construction, agriculture, animal husbandry, industry, trade, and services that supplement the economic activities of the state and cooperative sectors.