Twenty billion billion credit line for manufacturing firms
According to yesterday's meeting of the bank's managing directors, it was agreed with the head of the central bank that the central bank would pay the banks $ 20 billion in credit line to help finance their working capital and help their banks get credit.
According to Iran International Stone Exhibition, yesterday the head of the central bank hosted the bank's chief executives. At the meeting, based on the official announcement of the central bank's public relations, Hammett agreed with the proposals of bank managers to strengthen the credibility of the banks as well as to facilitate the terms and conditions of working capital facilities by active and accountable manufacturing units.
But what this agreement means and exactly what the central bank will do to strengthen the banks' credibility.
A bank official told the Fars reporter: "Due to rising currency prices and rising production costs, the need for manufacturing firms to raise working capital has increased significantly, and the Ministry of Industry, Mining and Commerce has released a new estimate of the need for firms." Production has provided working capital.
He added: "Accordingly, the banks were supposed to devote a significant portion of their resources to working capital payments and the central bank would help banks if needed." According to yesterday's meeting of the bank's managing directors, it was agreed with the head of the central bank that the central bank would pay the banks $ 20 billion in credit line to help finance the working capital of the companies and to help the banks get credit.
"This is the ceiling that the central bank will pay to banks to help finance the turnover of production units," the official said.
According to the report, the central bank appears to have pursued a targeted monetary and monetary base policy. In previous years, the central bank, without considering other variables of the economy, did not put in place a monetary expansion policy, leading to higher bank interest rates and eventually requiring banks to withdraw from central bank resources.
But this time, the central bank is planning to increase the monetary base in a sound policy aimed at supporting production and employment and in line with the economy's need for new liquidity and monetary base. The inflationary effects of this policy are far less than the bank's excessive overdrafts, and on the other hand, liquidity directly hits the real sector of the economy, which is the country's manufacturing sector, reducing the country's empty production capacity.
* Fars
