Govt. allocates about $1b to agricultural projects

TEHRAN – The Director-General of Economic Affairs at Iran’s Agriculture Ministry announced the allocation of 500 trillion rials (approximately $1.0 billion) in financial resources through special investment deposit certificates for profitable and strategic agricultural projects.

According to IRIB, Mohammad Khaledi stated that the Central Bank of Iran (CBI) has approved the issuance of 500 trillion rials in investment deposit certificates through banks to fund agricultural investors, prioritizing strategic projects.

Khaledi added that the interest rate for these special certificates is set at 25 percent for purchasers and depositors, while the cost for investors seeking these funds will be around 30 percent.

He noted that there are currently 100 agricultural projects under consideration, with each strategic project requiring financial resources exceeding 1.0 trillion rials ($2.0 million).

Emphasizing the importance of utilizing these financial tools in the agricultural sector, Khaledi said, “If 20 to 30 percent of the 100 agricultural projects are funded through these certificates, it will lead to significant transformation in the sector.”

He further explained that the CBI has, for years, promoted innovative financing methods to curb inflation and avoid increasing liquidity. “We, as executive officials, are striving to align with the Central Bank’s policies and leverage new opportunities to support production,” Khaledi added.

Khaledi also expressed hope that eligible agricultural production units will not face bureaucratic hurdles in accessing financial resources through these certificates.

He encouraged agricultural financing applicants to submit their requests directly to the Ministry of Agriculture’s Economic and Planning Department or to specialized divisions and provincial agriculture organizations.

Additionally, Khaledi highlighted the Central Bank’s introduction of a new financial instrument this year known as “GAM Certificates” (Forward Credit Certificates), which offers another innovative funding method.

He concluded by stating that the Ministry will review and outline the pathways for utilizing these new financial tools and work to eliminate barriers hindering access to these resources.

EF/MA