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Iran’s government keeps policy of financial support to tackle industrial recession

Politics Materials 16 October 2017 21:19 (UTC +04:00)
The Iranian government is still pursuing its policy of financial support to tackle industrial recession
Iran’s government keeps policy of financial support to tackle industrial recession

Tehran, Iran, October 15

By Mehdi Sepahvand - Trend:

The Iranian government is still pursuing its policy of financial support to tackle industrial recession.
According to Minister of Industry Mohammad Shariatmadari, in the current fiscal year (to end March 20) the government is providing 300 trillion rials to renovate industrial units and promote production.
This is while the first Rouhani administration, 2013-17, pursued the same policy, allocating huge amounts of finance to help low-functioning, half-idle factories to their feed.

In January 2017 it was announced that some 20,000 industrial units had emerged from recession since March 2016.

"About 140 trillion rials ($3.5 billion at market exchange rate) worth of loans have been granted to small- and medium-sized enterprises for their reactivation," Reza Rahmani, the deputy minister of industries, said then.

The loans were part of a stimulus plan prepared by the government's economic team, based on which loans worth 160 trillion rials ($4 billion) were to be given to struggling SMEs (micro, small and medium-sized enterprises) in the industrial and agricultural sectors.

Sonya Pouryamin, an advisor to industries minister, said the government has also helped revive factories whose production had stopped.

Some 88,000 manufacturing units are active in 992 industrial parks across Iran, which account for 42 percent of all employment in the industrial sector.

It is estimated that 96 percent of these businesses are considered small- and medium-size.
By definition, enterprises run by 100 workers or less, and 50 workers or less are considered small- and medium-sized respectively, according to Iran’s Small Industries and Industrial Parks Organization.
Iran's industrial sector saw the highest growth of 9.1 percent during the first six months of the previous fiscal year (started March 20, 2016) among other economic sectors of Iran, according to the Statistical Center of Iran.

The overall GDP growth for the period under review stood at 6.5 percent, including the growth in oil sector, and 4.5 percent without it.

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