New Credit Initiative Launched to Support Iranian Workers and Boost Domestic Production
In a significant move to enhance the economic well-being of the workforce, a new welfare credit card has been made available to Iran’s workers, following a directive from the country’s leadership to increase their purchasing power.
Strategic Partnership Forged
The initiative is the result of a cooperation agreement signed between the High Council of Iranian Trade Unions and the Bank of Workers’ Welfare. Ms. Somayeh Golpour, Head of the Council, stated that the memorandum of understanding was established to foster greater synergy, facilitate capital circulation, and develop mutual cooperation, ultimately enhancing the level of engagement between the labor community and the bank.
The “Gav” Welfare Credit Card
At the heart of this initiative is the “Welfare Card Connected to Gav Bonds.” This new credit instrument, designed for the first time by the Bank of Workers’ Welfare in collaboration with the Central Bank, aims to support domestic production and increase household purchasing power. The credit limit for this card can be up to 500 million tomans, with the exact amount for each applicant worker determined by their credit capacity as assessed by the bank.
Targeted Spending for Essential Goods
To ensure the initiative meets its core objectives, the credit facility is designated for a specific purpose. According to the executive instructions, the card can only be used to purchase essential goods from a network of designated stores, thereby directly supporting families’ basic needs and channeling resources into the domestic market.
Expanding a Successful Program
Ms. Golpour highlighted that this welfare card was previously exclusive to the retired community. However, in line with the emphasis from the country’s leadership on the necessity of raising workers’ purchasing power, the program has now been extended to the active labor force with the approval and cooperation of the Bank of Workers’ Welfare’s Managing Director.
The agreement is set to remain in effect until the end of Shahrivar 1405 (approximately September 2026) and is renewable upon mutual consent. The High Council of Iranian Trade Unions has expressed its full readiness to collaborate with any institution that can help improve the livelihood of workers under the current economic conditions.