Law Replaces Rial With Toman
Provisions of the law stipulate a maximum two-year “transitional period” during which both the toman and rial will be circulated in parallel and both will be legal tender, the parliamentary news agency ICANA reported.
The Majlis passed a bill Monday to change the monetary unit from rail to the popularly used ‘toman’.
Tehran Share Market Offers an Opportunity to Foreign Investors
SMEs Share in Non-Oil Exports Meager
Small- and medium-sized manufacturers located in industrial estates in Iran exported 2.4 billion worth of goods in the last fiscal year that ended on March 19, 2020, accounting for 5.8% of Iran’s total non-oil exports ($41.37 billion), the deputy minister of industries, mining and trade said.
Mohsen Salehinia was also quoted as saying by ILNA that 27 new industrial estates will be inaugurated in the current year (March 2020-21), adding that the share of SMEs in exports is expected to increase.
According to the official, a total of 44,892 industrial units in Iran’s industrial estates, among which 34,814 units (78%) are operating while 10,078 units (22%) are inactive.
Iran Small Industries and Industrial Parks Organization plans to revive 1,500 inactive small- and medium-sized enterprises in the current fiscal year that started on March 19.
According to the head of the organization, Asghar Masaheb, 1,444 SMEs were revived in the last Iranian year (March 2019-20).
By definition, enterprises run by 50 workers or less, and 100 workers or less are considered small- and medium-sized enterprises respectively, according to Iran Small Industries and Industrial Parks Organization.
SMEs’ share in Japan’s exports is at 60%, Taiwan’s at 70% and Singapore’s at 90%.
Small- and medium-sized enterprises constitute 92% of Iran’s 85,000 manufacturing enterprises.
Bank Melli Lends $43m to Newlyweds in 2 Months
Bank Melli Iran, the biggest lender, accepted 14,000 marriage loan applications worth 7.4 trillion rials ($43.5 million) during the first two months of current fiscal year (March 20-May 20).
Marriage loans are interest-free loans with 5-year maturity lenders are obliged to grant to newlyweds.
The state-owned lender paid more than 239,000 marriage loans worth 75.05 trillion rials ($450 million) during the last fiscal year that ended in March, indicating 45% rise compared to fiscal 2018-19, the BMI news portal said.
As per current rules, couples can apply for marriage loans up to two years after the pronouncement of their marriage contract.
Lenders have been told to prioritize lending to the new couples over other loans.
Over the years the amount of marriage loans has increased due largely runaway inflation and steep decline in purchasing power.
The 30-million-rial loan five years ago has now grown to 500 million rials ($3,125) per partner in the current fiscal year. It had increased from the previous 150 to 300 million rials ($1,875) per partner in the last fiscal year.
The government and relevant organizations have often voiced concern over the declining marriage rates and are encouraging the youth to marry by offering financial incentives. But this too has failed to convince the youth to tie the knot, and the marriage age keeps rising with fewer young people willing or able to start a family.
In another press release, BMI said it paid 131.81 billion rials ($770,000) in microcredit interest-free loans to 2,684 applicants during the first two months of current fiscal year.
It said the loans were granted to applicants in need of emergency credit for purposes such as medical bills, education funds and home repairs, among others.
In the last fiscal year, the lender paid 2.95 trillion rials ($17.3 million) in interest-free emergency loans.
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