Iranian Parliament Pushes for Major Overhaul of Employment Loans to Boost Livelihoods and National Economy
In a significant move aimed at bolstering economic resilience and supporting vulnerable families, a key Iranian legislator has called for a substantial increase in state-backed employment loans and a major extension of their repayment period.
Critique of Current Measures
Mohammad Baqeri Banabi, a member of the Iranian Parliament’s Economic Commission, has stated that the current 200 million Tomans employment loan is an insignificant figure in today’s economy, incapable of creating sustainable employment. He confirmed that the Commission is seriously pursuing a significant increase to this loan ceiling.
A More Manageable Repayment Plan
Highlighting another critical flaw in the existing system, Banabi criticized the short repayment timeline for these loans, which he stated places an undue burden on beneficiaries of support institutions. He emphasized that the repayment period must be extended to at least 7 years (84 months). This extended timeframe would allow recipients to comfortably repay the loan while simultaneously generating a stable income from their newly established or expanded small businesses.
Empowering Households and Communities
The legislator detailed the profound impact of these targeted loans. By providing essential startup capital, they enable eligible individuals to launch or develop small and micro-enterprises. This directly leads to the creation of a fixed income source and reduces dependency on government aid.
“Targeted loans, by facilitating access to financial resources, increase the self-confidence and improve the living conditions of households,” Banabi added. He further noted that the prosperity of small businesses in underprivileged areas contributes to a more equitable distribution of wealth and lays the groundwork for sustainable local employment.
Integrating Energy Independence
Addressing the specific policy of providing low-interest loans for solar panel installation to needy households, Banabi described it as a good solution that will significantly aid in income generation for beneficiaries. However, he clarified that while supportive, the main focus for addressing the country’s fundamental energy balance must remain on larger-scale planning in the domain of nuclear power plants.
He stressed that the government must prioritize the development of combined-cycle and nuclear power plants alongside renewable energy to guarantee the stability of the national power grid. Relying on a single solution cannot meet the country’s extensive needs. He concluded by pointing out that the employment loan mechanism itself is one of the best pathways to finance renewable energy power plants, and by accelerating the disbursement of these loans, the groundwork for the development and growth of solar power generation can be firmly established.