$2 Billion aid package to bolster automotive industry

Financial Tribune – The financial help is to be provided by the Central Bank of Iran, the state-backed Iranian Mines and Mining Industries Development and Renovation Organization and several private investors

The Central Bank of Iran, along with several local banks and government, is set to roll out an aid package worth $2 billion to boost the country’s automotive industry, secretary of Iran Auto Parts Manufacturers Association said.

Maziar Beiglou added that the financial help is to be provided by the Central Bank of Iran, the state-backed Iranian Mines and Mining Industries Development and Renovation Organization and several private investors, Tasnim News Agency reported.

The money is expected to help the sector expand production and seal their financial gaps, he added.

Beiglou noted that parts makers and auto production companies, which have long been struggling with a budget deficit, are expected to settle their financial issues and sign new contracts to resume work.

According to local reports, major Iranian carmakers, Iran Khodro (IKCO) and SAIPA, have accumulated substantial debts to parts makers.