How far is the financing plan and production jump from becoming a law?

According to Iran Economist, supporting production activities and economic sectors has always been one of the slogans of governments. When talking about supporting the production and financing of economic sectors, minds may go to the injection of liquidity, the granting of facilities and financial support; While there are other various tools that are much more practical and important than the mentioned support methods. The plan of financing and production jump seeks to strengthen these tools.

Financing plan and production jump with the aim of developing and increasing the financing institutions and infrastructures of different economic sectors, solving the problems and challenges of the financing system and facilitating it in the country’s economy through amending the laws “maximum use of the production and service capacity of the country and protection of the goods” Iranian” and “removing barriers to competitive production and improving the country’s financial system” have been proposed by the parliament members.

After the general approval of this plan on November 17, 1401, in order to review the second proposal, it was referred from the open floor of the parliament to the “Special Commission for Growth and Development of Production and Monitoring the Implementation of Article 44 of the Constitution”. Finally, this plan was approved in the Islamic Council on 23 August 1402.

This plan is divided into 6 chapters with the titles of definitions, development of financial system and assessment of credit and guarantee, facilitation of financing through banks and non-bank credit institutions, facilitation of financing through the capital market, facilitation of foreign financing and issuance of anonymous investment packages, partnership and Asset generation has been developed and in each chapter, financing methods have been described in one of these ways.

* The financing situation in Iran

One of the important indicators in evaluating the business environment of any country is the ability of the owners of those businesses to finance and attract capital in those countries. In various studies, this indicator has a very unfavorable situation in Iran.

Since in our country, the main purpose of raising the issue of financing is to obtain facilities from the banking system, this issue, along with the high inflation of the country as well as the negative rate of real interest, has actually caused the market of providing facilities to be affected by excess demand and queues to receive facilities. and this has caused an increase in the risk of banks providing facilities, so that the outcome of such a problem has been the deprivation of some applicants for facilities and the enjoyment of others.

In this process, in addition to the fact that the principle of the financing of enterprises has been damaged and caused discrimination in receiving facilities among economic actors, there is no guarantee that this method of financing is effective and can meet the needs of enterprises.

Therefore, it was necessary to make reforms in all financing methods and tools to support the financing of economic enterprises, the financing plan and production leap has tried to solve some of these damages in the financing system of the country.

* How does the financing plan and production jump facilitate the financing of economic actors?

If we consider the financing methods in two ways, internal (through profit from the company’s activities) and external (through receiving facilities), the financing plan intends to use policies such as encouraging internal financing of companies through tax incentives. , reducing external financing costs based on issuing shares, making it possible for banks to invest in infrastructure projects, expanding the range of guarantee tools to facilitate receiving loans, increasing the symmetry of information between customers and financial institutions by launching a credit assessment system and database, removing the tax mechanism from Financing funds and facilitation of foreign financing facilitate the process of financing companies and economic actors, especially manufacturing companies, so that we can witness the realization of the slogan of the year, which is “inflation control and production growth”.

The table below shows a summary of the advantages of the financing plan and the production jump.

* How far is the financing plan and production jump from becoming a law?

The plan for financing and production jump has recently been approved by the Islamic Council and according to the law, it must be sent to the Guardian Council for checking compliance with the Constitution and Sharia.

If the Guardian Council raises objections to this plan, the plan will be returned to the parliament to resolve the raised objections, therefore, depending on the Guardian Council’s opinion on this plan, it is expected that this plan will be approved. to go through the process of becoming law in less than a year.

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