TEHRAN,Iran,Jan.27
Trend:
Iran has finalized assigning $1.1 billion worth of loans to two major local automakers, but it is unlikely to lead to liberalization of prices, the member of Iran's Auto Parts Manufacturers Association Ebrahim Ahmadi told Trend.
"Automakers should pay an 18-percent interest rate for the loan payment and in case of delays, the interest rate will increase to 24 percent," he added.
"The loans are to be provided to automakers within a year, but the delays are possible," Ahmadi said.
The official pointed out that despite the decrease in car prices on the market, the automakers would be facing losses again.
"The losses of Iran Khodro Company during the current Iranian year (started March 21,2019) stood at $1.9 billion. This cannot be denied since the company is in the stock market trading and requires to be transparent," he said.
Unfortunately, Ahmadi believes, the problems of Iran Khodro and SAIPA wont be solved by loans, because "not only they are in debt from previous accounts, but in case of losses they won't be able to get another loan, and would require an order of authority to obtain more credit."
"We hope that auto production will not drop in next Iranian year, but considering the current situation and intense sanctions, the situation is becoming worse with each day," he said referring to daily production of 2,000 to 2,500 cars in the country.
Along with that, the purchasing power of the population has decreased, as far as buying cars goes.