Deputy Minister of Agriculture Jihad announced

Iranian Rural Cooperative Credit Fund's Financial Structure to Be Modified

EghtesadOnline: The deputy minister of Agriculture Jihad announced that we want to modify the balance sheet structure and financial structure of the Iranian Rural Cooperative's credit fund. Dr. Shirzad, in a meeting with the new Board of Directors of the fund emphasized on lending activities and low interest rate lending avoiding intermediation.

News ID: ۷۴۹۳۳۰

01 January 2020

According to PAT,  Dr. Hossein Shirzad, Chairman and Managing Director of the Central Organization of Rural Cooperatives of Iran, Addressing the audience,  said: " The truth is we had to enter into new financial policies and strategies and that the Board should be in charge of financial efficiency, quality development of forces and Correct location of branches and evaluation of existing branches with new ones to maintain equity",he added: "It is necessary to thoroughly review the efficiency and effectiveness of the branches. If the financial performance and productivity of the workforce is positive, the staffing activity will be effective. Avoid customized and inefficient human resources in order to streamline the workforce, and use specialized and competent workforce."

Shirzad added: It is necessary to thoroughly review the efficiency and effectiveness of your  branches. If the financial performance and productivity of the workforce is positive, the staffing activity will be effective. Avoid customized and inefficient human resources in order to streamline the workforce, and use specialized and competent workforce.

Deputy Minister of Agriculture Jihad pointed out that with the use of "e-banking" capacity, encrypted currencies and blockchain environment one can avoid the establishment of new branches, stating: You should work on banking and transactions and work on reducing the expense and lowering the interest rate on loans. Customer accreditation is on the agenda and if you have 50 reputable and low-risk clients in the agricultural sector, Manpower and administrative overhead costs are met annually and by increasing the participation of all Rural Law subsidiaries, increase the fund capital.

Dr. Shirzad added: Establish a monitoring and control unit in accordance with current financial management standards and maintain strict standards of inspection and supervision of branches, and trade in cash and profitable products. The organization's policy is to reduce the number of branches and modify inefficient human resources, move towards formalities of raising capital, equipping funds, directing investment in contract purchases.

In another part of his remarks, Dr. Shirzad added: "The fund's strategy should be based on attracting The Wandering Cash  in the agricultural sector. Fund to meet the stock market for broader financing, be active in agreed purchases, and participate in micro markets (cumin, barberry, jujube) and enter fund raising procedure .All Rural Subsidiaries and National Unions subsidiaries participate in restructuring the fund's corporate governance structure.

At the end, shirzad said: "Take advantage of the huge capacity of the Rural and Agricultural Cooperatives Network( with five million members)and the fund should try to leverage innovation and creativity in the electronic space. It is essential that the IMF Board of Directors provide the Central Bank with regular reports on cash flow, financial statements and optimal capital adequacy, and that it continues to cooperate with the Central Bank's oversight system. "