Iran’s Trade Promotion Organization will allocate $45 million to support the country's non-oil exports, Hamid Zadboum, the head of the organization said.
Zadboum said the funding is a clause in the March 2021-22 fiscal budget, IRNA reported. Like past years, part of the help will be in interest rate discounts on loans, according to Zadboum.
Export loans are at 14% but companies eligible for discount can pay 4%. Eligibility is subject to credibility and the capacity to export.
“Last year almost 48% of the funds were paid as interest discount on export loans,” he said.
The support package is to be financed by the National Development Fund of Iran, the sovereign wealth fund. NDFI support will be given to eligible exporters via designated banks, including the Export Development Bank of Iran.
Saddled with the US sanctions and the Covid pandemic, foreign trade authorities are striving to improve export growth and expand export markets. Iran exported to 143 countries and imported from 123 in fiscal 2020-21.
Exports generated $34.99 billion and imports cost $38.89 billion,” Rouhollah Latifi, spokesman of the Islamic Republic of Iran Customs Administration, was earlier quoted as saying by IRNA.
China with $9.77 billion, Iraq $7.44 billion, the UAE $4.66 billion, Turkey $2.53 billion and Afghanistan $2.3 billion were Iran's main export destinations. Imports came mainly from China with $9.84 billion, the UAE $9.75 billion and Turkey $4.4 billion.
Almost 50% of the exports were petrochemical and petroleum products, 20% minerals, 18% food products and 10% industrial goods, gas condensate and handicraft.