CBI Underscores Support for Agricultural Sector

EghtesadOnline: Central Bank of Iran Vice Governor Akbar Komijani underscored the banking system’s contribution to the implementation of a national policy to promote domestic production by providing substantial support to the agricultural sector.

News ID: ۷۸۲۵۲۳

12 May 2018

“The banking system has always stood by the agricultural sector in full coordination with others involved in devising economic regulations and policies, and never spared any effort to support this key segment of Iran’s economy,” Komijani said in a speech at the Conference on Agriculture Economics on Wednesday.

He cited banking policies to cut interest rates on loans awarded by Keshavarzi Bank, extend loan repayment periods and waive the interest and other charges incurred as a result of overdue payments by those who suffered heavy losses from disasters, natural or otherwise, CBI’s official website reported.

“Besides, funds allocated under the annual budgets for the fiscal 2016-17 and 2017-18 [that ended on March 20, 2018] were used by CBI partly to settle part of Keshavarzi Bank’s debts and partly to boost the bank’s capital,” Financial Tribune quoted him as saying.

“The banking sector has played a prominent role over the past few years in enforcing a plan to guarantee the purchase of agricultural products, particularly wheat.”

Komijani noted that the above-mentioned measures reflect the monetary policymakers’ commitment to meet the capital requirements of the agricultural sector.

CBI Governor Valiollah Seif also addressed the event and said more needs to be done to revamp the agricultural sector.

“The reliance on financing tools and liquidity injection is not a solution to the problems facing the production units … It is expected that other factors contributing to the performance of such enterprises like promotion of business climate and investment security, and the removal of barriers to production would also receive as much attention,” Seif said.