Official Says Iranian Banks Have No Money For Manufacturing Sector

A member of the Tehran’s Chamber of Commerce says the country's banks do not have enough money to provide loans and credits to the manufacturing sector.

In an interview with ISNA news agency published on Thursday, Abbas Argoun said that the 40-percent rate of annual inflation and the growth of operating expenses in various sectors have left banks with no money to finance industrial producers.

Financing is one of the main components for enterprises to remain afloat, “both for the production and current expenses”, he said, noting that “the 40-percent inflation rate in the country means that an enterprise needs to spend 40% more just to be able to repeat last year's performance”.

Argoun added that financing the manufacturing sector through investment or the stock market is not possible for many companies, so the banking system is tasked with the burden of providing the capital, “and due to the limitations of the capital market, this is very difficult”.

He noted that “the banks are the only hope for economic enterprises” while they are “faced with serious problems due to internal and external pressures, practically leaving them with no money to give to producers and economic enterprises”.

On Monday, Speaker of Parliament Mohammad Bagher Ghalibaf informed lawmakers that he received a letter from Khamenei asking the legislature and the presidential administration not to make financial demands from banks that are beyond their resources to fulfill.