Title: New “National Credit” Initiative Aims to Bolster Economic Support for Vulnerable Groups
In a significant move to enhance social welfare, Iranian authorities have detailed comprehensive plans to support lower-income citizens through targeted financial mechanisms. The “National Credit” scheme, announced by the Minister of Economic Affairs and Finance, stands as a cornerstone of this effort, promising a more streamlined and effective allocation of state resources.
Parliamentary Oversight for Vulnerable Groups
Ahmad Fatemi, a member of the Parliament’s Social Commission, underscored the legislature’s commitment to safeguarding the nation’s most vulnerable populations. He confirmed that the budget law for the current Iranian year includes specific provisions to support low-decile families, despite acknowledged financial constraints.
“Through careful monitoring, the Social Commission is tracking the allocation of credits for vulnerable groups, including female-headed households, recipients of support from the Imam Khomeini Relief Foundation and the State Welfare Organization, as well as insolvent veterans and martyrs’ families,” Fatemi stated. He emphasized that this oversight is crucial to ensure resources are correctly directed.
The MP highlighted that the Parliament’s focus has remained on aiding lower-income deciles through employment programs, housing loans, electronic subsidy cards, and direct cash subsidies, all designed to improve living conditions.
A New Financial Tool: The “National Credit” Plan
Echoing the parliamentary focus, Minister of Economic Affairs and Finance, Seyed Ali Madanizadeh, announced a major new project titled “National Credit.” He described it as one of six key initiatives by his ministry, designed to provide low-cost facilities, particularly for lower-income deciles.
The Minister explained that the “National Credit” plan can be integrated with a Supply Chain Finance (SCF) network, a model that allows for the circulation of credit across various production and consumption sectors. This integration, he noted, would enable a more targeted and effective channeling of national resources to the public. He further suggested that other national plans, such as those concerning youth population growth and childbearing, could also be linked to this financial network.
Driving Economic Justice and Stability
Minister Madanizadeh positioned the initiative as a modern solution for economic justice. “Traditional banking is no longer sufficient,” he declared, asserting that supply chain finance exemplifies economic fairness by reducing financing costs, controlling liquidity, and curbing inflation.
He outlined the ministry’s policy to create a balanced financial system: large enterprises would be financed through the capital market, while small and medium-sized enterprises (SMEs)—which form the backbone of national employment—would be supported through the banking market, with the clothing industry cited as a prime example.
The Minister also indicated that in the event of energy price reforms, the government could utilize the “National Credit” framework to provide assistance to lower-income groups, potentially transforming energy subsidies into more direct and equitable support within the SCF model.
While the full details of the “National Credit” plan are pending an official public release, its implementation is poised to become a key instrument for the government’s social support strategy, offering a potential new chapter in household financial relief for many citizens.