Tehran, Dec 10, IRNA - The government is taking steps to ensure that commodity prices will not increase next year (starting March 21, 2015), said Mohammad Baqer Nobakht, vice president for strategic planning and supervision.The Management and Planning Organization (MPO) is tasked with providing manufacturing units with bank guarantees in the coming year, Nobakht said in a live televised program Monday night.
The Management and Planning Organization, formerly known as the Plan and Budget Organization, was dissolved under the former administration. The body was in charge of evaluating the countrys resources and preparing medium and long-term development plans as well as budget bills. At present, the vice presidency for strategic planning and supervision plays the MPOs role.
Nobakht said that 52 trillion rials out of the governments 480-trillion-rial revenue earned through the Subsidy Reform Plan is to be allocated to the manufacturing units in the form of cheap loans, without providing further details on lending interest rates or eligibility requirements for loan-seekers, according to Financial Tribune Daily Wednesday.
Although it is still unclear how the cheap loans are going to affect the prices, it can be inferred that the move is aimed at offsetting the possible losses that manufactures could sustain in the production process.
The lending interest rates in Iran vary significantly depending on the banks providing the loans as well as the type of loans.
By IRNA
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