TEHRAN – The Iranian banking system has paid 12.41 quadrillion rials (over $295 billion) in loans to domestic economic sectors in the first seven months of the current Iranian calendar year (March 21-October 22), registering a 64.8-percent rise from the same period in the previous year, IRNA reported.

According to the data provided by the Ministry of Industry, Mining and Trade, the country’s service sector received over 6.41 quadrillion rials (about $152 billion) of the loans, accounting for 43.2 percent of the total facilities.

The industry and mining sector received 4.397 quadrillion rials (about $104 billion) to have a 29.7-percent share in the total facilities, followed by the business sector with 2.232 quadrillion rials (about $53 billion) equaling 15.1 percent share.

The agriculture, the housing, and the construction sectors, also received 1.03 quadrillion rials ($24 billion), 757.4 trillion rials (about $18 billion), and 5.1 percent of the total facilities, respectively.

Based on the mentioned data, the facilities paid by the banks and credit institutions to the industry and mining sector in the mentioned seven months grew by 67.2 percent compared to the previous year’s same period, while the figure also increased by 66.6 percent for the agriculture sector, 58 percent for the housing and construction sector, and finally by 30.1 percent for the commercial sector.

In recent years, the Central Bank of Iran (CBI) has defined supporting production as one of its major plans.

In May 2019, former CBI Governor Abdolnaser Hemmati, outlined 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 funds for production activities and also to provide the working capital needed for such activities.

EF/MG