Rewritten Title: Parliament Pushes for Extended Loan Terms to Support Vulnerable Borrowers and National Production
Article:
A Call for Central Bank Action on Supportive Loans
A senior Iranian parliamentarian has called for the Central Bank of Iran (CBI) to enhance its performance in delivering supportive loans, emphasizing that such measures are crucial for empowering vulnerable citizens and boosting the nation’s productive sectors.
Delays and Difficulties
Ali Babaei Karnami, the head of the parliament’s Social Commission, pointed to significant delays in this year’s allocation of employment loan quotas. He stated that the CBI’s late announcement meant a large part of the year passed without these vital facilities reaching applicants, particularly those registered with supportive institutions.
“The Central Bank’s performance in the field of providing supportive loans is not appropriate, and necessary follow-ups must be done in this regard,” Babaei Karnami was quoted as saying.
Controversial Repayment Terms
The official highlighted a new challenge for borrowers: a reduction in the loan repayment period. While the loan amount has increased, the repayment term has been shortened from 84 months to 60 months. According to the parliamentarian, this change places substantial financial pressure on the beneficiaries of these loans.
In line with the country’s Seventh Development Plan, he urged that the repayment period for employment loans be returned to the 84-month framework to ensure the facilities remain accessible and effective.
Supporting the Vulnerable and National Priorities
Babaei Karnami stressed that the primary recipients of these employment loans—beneficiaries of the Imam Khomeini Relief Foundation and the State Welfare Organization—are among the country’s most vulnerable groups. The core objective of these loans is to empower them to start businesses, thereby solving their unemployment and moving them away from direct state aid.
He further linked the effective distribution of supportive loans to the successful implementation of the country’s macro-policies, including those concerning the youth population and the revitalization of production units. He noted that current laws and high-level documents emphasize supporting production and directing credits to generative sectors, making the CBI’s perceived shortcomings in this area illogical.
Parliamentary Follow-Up Assured
The head of the Social Commission assured that the parliament would continue its necessary follow-ups on this matter. He stated that specialized parliamentary commissions are actively pursuing the provision of employment loans with suitable conditions for those in need, expecting the CBI to adopt a more serious approach toward supportive facilities.