Plasco Tragedy Sufferers to Receive Relief, Loans

EghtesadOnline: A specialized committee will be established to assist some 560 production units formerly active in the now-leveled Plasco building to get back on their feet by resolving their insurance, banking and tax problems, announced the minister of economy.

News ID: ۷۷۳۴۱۸

23 January 2017

On Thursday morning, the 17-floor commercial high-rise–first of its kind in the Iranian capital and built 56 years ago–caught fire and collapsed in its entirety leaving dozens of firefighters and possibly civilians dead. The exact number of casualties has yet to be officially released.

Based on Economy Minister Ali Tayyebnia’s orders, the committee will comprise the director of Iranian National Tax Administration and a deputy economy minister, Seyyed Kamel Taqavinejad, deputy economy minister for banking and insurance, Hossein Qazavi, and the director of Central Insurance of Iran, Abdolnasser Hemmati, reports IBENA.

The economy minister ordered INTA to forgive all tax debts pertaining to the production units and sales outlets in the building that mainly produced apparel, shoes and sportswear, Financial Tribune reported.

Calling on banks, Tayyebnia said, “They must cooperate completely to jumpstart the damaged units and provide the working capital required to restart their activities.”

He also called on Qazavi and Hemmati to work closely with insurance companies to provide insurance services such as life insurance to support the families of firefighters who laid down their lives in the line of service.

They have also been directed to cover damages “within the framework of commitments with urgency and maximized efforts”.

“A number of our countrymen lost their lives and property and it is incumbent on all of us to use all existing capacities to ease their grief,” Tayyebnia said.

Soft Loans for Victims

Valiollah Seif, the governor of Central Bank of Iran, visited the site of the tragic collapse, announcing that a secretariat will soon be formed to collect data pertaining to the damaged units.

“It was decreed in today’s meetings of the Association of Private Banks and Credit Institutions and the Coordination Council of Public-Sector Banks that in the following days, a secretariat will be formed so that the damaged units can be referred to related banks for receiving loans after referring to the secretariat and creating a file,” he said.

“The precise mechanisms of the scheme will be announced in the next few days.”

Providing more details about the loans, Seif, who also heads the Money and Credit Council, said loans up to three billion rials ($78,200) will be allocated to each business with a one year grace period.

After the grace period ends, applicants will repay the loans over 36 months and at lending rates devised by the MCC–currently 18%.

“We hope that these loans can be allocated outside of the usual bureaucracy and faster,” he said. “I must also point out that all active production units in the building are eligible to receive the loans.”

Minister of Cooperatives, Labor and Social Welfare Ali Rabiei also announced a different set of loans and welfare benefits for people affected by the Plasco tragedy.

“Plasco building workers who are now left without a job can go to the ministry from Sunday to receive unemployment compensation,” he added.

“Owners of production units in the Plasco building will also be able to apply for one billion rial ($26,000) loans with an interest rate of 4%.”

The minister also announced that capital has been provided to Bank Refah in order to be allocated to people who employ the now-unemployed Plasco workers without divulging the exact amount.

Rabiei said Social Security Organization will cover the costs of treating the wounded firefighters and “the pensions of deceased firefighters will be provided as of today (Sunday) without any bureaucratic formalities”.