Title: Central Bank Reinstates 84-Month Repayment for Welfare Recipient Loans, Aiming to Boost Employment
In a significant move to support national employment initiatives, the Central Bank of Iran has reinstated the 84-month repayment period for employment loans allocated to welfare recipients. This decision, which reverses a previous reduction to 60 months, is designed to ease financial pressure on vulnerable citizens and align with the directives of the country’s Seventh Development Plan.
A Legislative Mandate for Employment
The creation of sustainable employment stands as a cornerstone of the government’s policy. In line with this priority, the Seventh Development Plan explicitly mandates the provision of employment loans to beneficiaries of supportive institutions, such as the Imam Khomeini Relief Foundation and the State Welfare Organization. The Central Bank is tasked with allocating the quotas for these loans and overseeing their distribution through the banking system.
Addressing Practical Challenges
The implementation of these vital loans has faced procedural hurdles. This year, the initial delay in assigning quotas by the Central Bank meant a significant portion of the year passed without the disbursement of funds, slowing progress on job creation projects. The subsequent shortening of the loan repayment term to 60 months was met with concern, as it increased the monthly financial burden on recipients, who are often household providers with no other source of income.
Parliamentary Support for Extended Repayment
The decision to return to the 84-month framework has been welcomed by lawmakers who advocate for the nation’s vulnerable populations. Abdolkarim Hashemi Nakhle Ebrahimi, a member of the parliament, emphasized the critical nature of these loans.
“Recipients of these employment loans are primarily sole breadwinners who rely on this financial support entirely,” Hashemi stated. “It is essential to provide them with the maximum facilities, particularly concerning the repayment period and interest rates.”
He further elaborated that a longer repayment term and lower interest rates are not just beneficial for the recipients but also for the system’s overall health. This approach reduces the risk of default and allows individuals to steadily build a sustainable income from their business ventures while managing their debt.
A Strategic Objective: Economic Empowerment
The core objective of this policy adjustment is to offer tangible support to vulnerable citizens and facilitate their access to the capital necessary for economic improvement. By providing a more flexible and manageable repayment structure, the initiative aims to empower recipients to successfully establish income-generating activities, thereby contributing to broader national economic resilience and self-sufficiency.