Currency loans to Iranian car parts manufacturers to be returned in rial

Finance Materials 18 April 2019 16:23 (UTC +04:00)

Tehran, Iran, April 17


Iran Minister of Industry, Mines and Trade Reza Rahmani announced that Head of the Central Bank agreed to pay the currency loans to car parts manufacturers and repay it in rials.

"The currency loans are to be paid to part makers, and they can return it in rials, with associated interest, to avoid their losses due to currency rate fluctuations,” Reza Rahmani told IRNA, Trend reports.

On February 4, the Deputy Minister of Industry, Mine and Trade Farshad Moghimi announced allocation of $952 million credit to Iran Khodro and Saipa companies, IRNA reports. Subsequently, the executive operation began to allocate this amount to the debts of these two major Iranian car makers to parts manufacturers.

The Minister of Industry confirmed reports on importing tires with NIMA rate and said the government zeroed the import’s tariff for many commodities to reach commodities such as tires, meat, etc. at a cheaper price.

Regarding the supply of food items during Ramadan, the stock of most basic goods is in a proper condition, Rahmani says.

Referring the fluctuation of sugar prices in recent months, he said that it is not caused by shortage of the product. In his words, there was a need for providing larger volumes of the product to some areas including flood effected provinces.