200 Export Firms Borrowed $130m

EghtesadOnline: The Trade Promotion Organization of Iran gave export incentives to the tune of 33 trillion rials ($132 million) to 200 plus companies, the TPO chief said.

News ID: ۷۸۶۵۹۱

04 July 2021

Hamid Zadboum said the support was in the framework of a government-backed package to boost non-oil export in the last fiscal that ended in March.

The funding was made available from the National Development Fund of Iran, the sovereign wealth fund, and partially from banks.

“The entire package was worth 40 trillion rials ($159 million), half of which was procured from the NDFI and the other half from banks,” Zadboum was quoted as saying by IRIB.

Export loans are normally at 14.5% interest but credible companies pay lower rates depending on their ranking on the credibility list plus their export capacity, Zadboum said without elaboration.

One credibility criteria is the exporters’ financial commitments namely repatriation of overseas forex earnings to the country.

“The TPO is processing loan applications of 137 export firms who have met their commitment in returning overseas income,” Zadboum said.

Loan requests of 100 applicants were rejected either by the TPO or agent banks, he added.

The government has not yet announced the support package for the current year. However, the TPO earlier announced plans to lend 10 trillion rials ($40m) as per the provisions of the fiscal budget in the current fiscal year, IRNA reported.

Grappling with US sanctions and the coronavirus pandemic, foreign trade authorities are striving to increase non-oil export and expand export markets.  Iran exported to 143 countries and imported from 123 in fiscal 2020-21.

"Exports stood at $34.99 billion and imports hit $38.9 billion,” Rouhollah Latifi, spokesman of the Islamic Republic of Iran Customs Administration, was quoted as saying by IRNA.

China with $9.77 billion, Iraq $7.44 billion, the UAE $4.66 billion, Turkey $2.53 billion and Afghanistan $2.3 billion were Iran's main export destinations.

Imports came mostly from China with $9.84 billion, the UAE $9.75 billion and Turkey $4.4 billion.

Almost half of the export in fiscal 2020-21 was petrochemical and petroleum products, 20% mineral products, 18%  agricultural and food products and 10% industrial products, gas condensate and handicrafts.