TEHRAN – Iranian banking system has provided 856.48 trillion rials (about $20.3 billion) of financial facilities to 27,084 small and medium-sized enterprises (SMEs) over the previous Iranian calendar year (ended on March 20), the Central Bank of Iran (CBI) announced.

As IRNA reported, the bank has it on the agenda to continue the program for financing SMEs in the current Iranian calendar year as well.

This program aims to pave the way for developing domestic production in order to fulfill the slogan of the year which is “production: support and elimination of obstacles” considering the country’s special economic conditions and the U.S. sanctions.

Back in April, the Ministry of Industry, Mining and Trade had announced that 167 trillion rials (nearly $3.97 billion) was paid to SMEs and semi-finished industrial projects with an over 60 percent physical progress during the previous Iranian calendar year.

The mentioned payments were made in the form of bank loans paid to 5,044 projects and production units, according to the ministry data.

CBI has defined supporting production as one of its major plans over the past few years.

CBI Former Governor Abdolnaser Hemmati has repeatedly stressed that supporting production units to flourish production is the priority of the country’s banking system.

In early May 2019, Hemmati had outlined CBI plans for neutralizing or relieving the impact of U.S. sanctions on the country’s economy and mentioned providing liquidity and working capital to maintain and boost domestic production as one of those plans.

CBI’s plans take two major approaches, one of which is to secure finance for production activities and also to provide the working capital needed for such activities.

EF/MA