TEHRAN,Iran, May 12
Trend:
Iranian government's supportive packages for venerable businesses will help improve the working conditions of these businesses, professor of the economics at Tehran University Ali Akbar Nikoo Eghbal told Trend.
"The government has announced that it would use supportive instruments to help businesses and classes that suffered from the recession. Based on the Central Bank's reports, all banks are obligated to provide low-interest loans to 10 business categories that got hit by the COVID-19 pandemic," he said.
"Restaurants, stores that sell sweets and nuts, travel agencies, hotels, transportation companies, airlines, textile companies, leather producers, sport centers are among the recognized business groups that would receive support," Eghbal said.
"The government and the Central Bank's efforts to control the effect of coronavirus on economy includes 750,000 billion rials (about $17 billion) worth of loans for businesses with a 12-percent interest rate, 50,000 billion rials (about $1.1 billion) worth of aid to the unemployment insurance fund and a support package for the low income class," he said.
"Delaying loan repayment to three months, possible money withdraw from the National Development Fund for purchase of medicine and medical equipment, request for $5 billion loan from the International Monetary Fund and extending the tax payment deadline for value added tax to three months are the measures taken by the government, although the businesses have lost 3 months of good sales that was before the new year holiday(started March 20,2020)," Eghbal said.
"The delay of loan repayment for three months can't help the conditions for businesses to work back to the surface," he said.
"In the best case scenario, it would improve the conditions of work , welfare of families," he said.
"The government has announced the economic stimulus package of about $23 million, although it should have the capacity to move the economy out of crisis and there should be resources for that," Eghbal said.
Thanks to the coronavirus pandemic, many Iranian local businesses suffered great losses, and have yet to be 'brought back to life'. The government has been trying to provide necessary help to support its economy.
The World Health Organization (WHO) on March 11 declared COVID-19 a pandemic. Some sources claim the coronavirus outbreak started as early as November 2019.
Iran continues to monitor the coronavirus situation in the country. According to recent reports from the Iranian officials, over 109,200 people have been infected 6,685 people have already died. Meanwhile, over 87,400 have reportedly recovered from the disease.
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.