TEHRAN,Iran, April 8
Trend:
Iranian government's plan to provide loans to low income families can be sufficient to purchase of basic goods during the coronavirus, economist Vaheed Shahri Shaghaghi told Trend.
"This measure would provoke the demands, the recession can not be redeemed if the economic demands are not provoked and it would create heavy recession," he said.
"People's purchasing power has reduced and businesses that got hurt by the coronavirus spread have downsized their workers that are part of low income class, and this in turn has also reduced consumption," he added.
"It is certain that in next two months or so the government would provide payments to low income families, to cover part of their needs," Shaghaghi said.
"The banking system is currently facing various problems, therefore a possible plan for non-refundable loan would have effected liquidity, so the government said the money would be paid out gradually by low income families," he added.
Shaghaghi said the government looks to use other methods to support the low income class as well.
"The government would pay nearly 40 million rials (about$925) per year to a family of four for gasoline and living needs. At the moment, the government is to pay 10 million rials (about $238) each family," Shaghaghi said.
"In the next steps it's possible that the government would provide advances in forms of coupons for goods or cheaper prices for some goods to help the needs of families," he added.
"The closure of businesses during the past two months has affected economy in various sectors," Shaghaghi said.
"Resumption of work and economic activities is important since Iran is under sanctions, while foreign currency sources have been consumed and other foreign currency sources of Iran are blocked so we can not have certain goods and stay in quarantine," he added.
"Iran has no choice but to produce sanitary products itself, considering the pandemic, this is the priority," he said.
The World Health Organization (WHO) declared COVID-19 a pandemic on March 11. Some sources claim the coronavirus outbreak started as early as November 2019.
Iran is one of the countries heavily affected by the rapidly-spreading coronavirus. The country continues to apply strict measures to contain the further spread.
Reportedly, the disease was brought to Iran by a businessman from Iran's Qom city, who went on a business trip to China, despite official warnings. The man died later from the disease.
The Islamic Republic only announced its first infections and deaths from the coronavirus on Feb. 19.