Flawed Financing Model Makes SMEs Desperate for Loans

EghtesadOnline: The banking system must spend the lion’s share of its resources on granting long-term loans to large enterprises, because of which small- and medium-sized enterprises (SMEs), as well as households, have fewer opportunities to take out small loans.

News ID: ۷۵۲۶۵۸

04 July 2023

The banking system must spend the lion’s share of its resources on granting long-term loans to large enterprises, because of which small- and medium-sized enterprises (SMEs), as well as households, have fewer opportunities to take out small loans.
In Iran, the financing of industries and economic enterprises is mainly carried out through the banking system. This does not create a serious problem for large companies, but may not be suitable for the entire monetary and banking system of the country.