The support measure was announced last year, but according to data provided by the Trade Promotion Organization, the government was unable to make all the resources available, Financial Tribune reported.
As per a communiqué of the first VP, the Ministry of Industries, Mining and Trade is required to finalize related guidelines and directives within two weeks and allocate 7,800 billion rials (about $580 million) to improve exports.
Financial resources of the National Development Fund of Iran is seen in large measure for underpinning this support package, the Persian-language newspaper Etemaad reported.
The first clause of the guidelines refers to 20 trillion rials ($148.69 million) withdrawal from the NDFI. Designated banks are required to provide eligible exporters with loans during a two-year period. Half of the funds for the loans will be provided by the NDFI. Average interest rate on NDFI loans currently is 11%.
The second clause refers to NDFI’s €1 billion in facilities that could increase to €2 billion. The loans can be offered also by export companies to foreign customers of Iranian products.
Out of 7,800 billion rials, 870 billion rials ($6.46 million) will be used to support Iranian companies participation in international exhibitions, 500 billion rials ($3.71 million) will go to opening of Iranian commerce centers in target markets, 2,000 billion rials ($14.86 million) in loans to exporters, 710 billion rials ($5.27 million) for export promotion and advertising.
Likewise, 650 billion rials ($4.83 million) will go for opening new transportation corridors, 70 billion rials ($520,446) to brand-building, 200 billion rials ($1.48 million) to empower small enterprises, 300 billion rials ($2.23 million) to support export projects, 200 billion rials ($1.48 million) to purchase of goods on credit, 2,000 billion rials ($14.86 million) in special support for export products with higher added value and 300 billion rials ($2.23 million) to support infrastructure development.
The package to assist non-oil exports is unlikely to be fully implemented this year because the new Iranian year is less than two months away.
However, once it comes into force, it will have addressed the main concerns of producers regarding funds they need to boost exports.