New methods of financing cooperatives are available in Cooperative Development Bank

According to the financial news report, citing the public relations of Cooperative Bank, Mohammad Sheikh Hosseini, CEO of Cooperative Bank, announced at the ceremony of appreciation of the top cooperatives of Tehran province: New methods of financing cooperatives are available in this bank.

Sheikh Hosseini, in the appreciation conference of the top cooperatives of Tehran province, in the presence of Mehdi Maskani, Deputy Cooperatives of the Ministry of Cooperatives, Labor and Social Welfare and Honorary Governor of Tehran, said: In order to develop and grow the share of the cooperative sector in the economy, it is necessary to increase the level of productivity and efficiency of production and Services, it should be noted that it requires improving the level of management, using new technologies and providing working capital.

He added: The strategy of change and integration is one of the other strategies for the development of the cooperative sector. In the law provided for in accordance with the policies of Article 44 of the Constitution, the cooperative sector is given priority in the transfer of state enterprises and due to the characteristics of the cooperative sector as a sector. The people of the economy have it, including the social dimension, economic justice and people’s participation in the economy; In handing over a government enterprise to the cooperative sector, it is not just a matter of changing the name and title of companies and enterprises, but in cooperative activities, facilitation, organization, people’s participation and realization of economic justice can be realized well.

Sheikh Hosseini said: One of the most important methods of growth and development of the cooperative sector is new investments, development cannot be achieved without investment. Considering that 88% of the financing of the country’s economy is done through banks, banks can also play a role in the investment of the cooperative sector.

This banking official continued: Cooperative Development Bank was established in 2008 by the government in order to help increase the share of the cooperative sector in the economy, the share of the cooperative sector in the national economy is estimated at around five percent, eighty percent of the country’s economy is state-owned and this that the cooperative sector has remained at a level lower than five percent, it is dominated by the state economy, and in the current period and in the thirteenth government, the share of the cooperative sector is growing, with the support of the supreme leader of the revolution, the honorable president and the minister of cooperation, labor and welfare social and with the management of the deputy cooperative of the Ministry of Cooperatives, Labor and Social Welfare as a militant helmsman and with the adequacy of the cooperative department, synergy, centrality, unity and cohesion have been created among all the elements and actors of the cooperative life, and all the resources and facilities available for The growth of the cooperative sector has been mobilized and the growth and promotion of the cooperative sector in the country has started.

Sheikh Hosseini said: This capacity exists in the country, in the cooperative sector and in this government, so that the increase in the share of the cooperative sector can be realized annually, and as the 2% annual growth is mentioned in the cooperative development document, this important thing can be realized.

He pointed out: Cooperative Development Bank started working with a capital of five thousand billion Rials, and the current capital of the bank is 62 thousand billion Rials, of which 15 thousand billion Rials were in cash, Development Cooperative Bank is more than a hundred times this amount. has paid the facilities and 95% of the bank’s facilities have been targeted and paid to the real sector of the economy. Of course, it is important to mention that since the establishment of the bank in 2008 until now, 60% of the total payment facilities of the bank have been paid in the last two years, i.e. in the 13th government.

Sheikh Hosseini clarified: Cooperative Development Bank is a multi-purpose development bank and the development facilities of the bank are paid due to the expansion of the cooperative sector in all sub-sectors of the economy including industry, agriculture, commerce and housing, the facilities have been with the least deviation. Only five percent of the bank’s facilities are in the form of mortgages, and the facilities are paid in the real sectors of the economy.

The Managing Director of Cooperative Development Bank emphasized: The growth and development of the cooperative sector requires the participation of all banks in the direction of financing, including the need to allocate 25% of the banks’ credit facilities to the cooperative sector, as stipulated in the cooperative development document. In Tehran province, with the guidance of the governor of Tehran and the measures of the director general of cooperation, work and social welfare of Tehran province, 25% of the debt facilities of the banks in the province have been paid attention to the cooperative sector.

He had the means: the goal is to allocate 100% of the capacity of the Cooperative Development Bank to the cooperative sector in the payment of installment and note facilities, the cooperatives and members of the cooperatives will be guided to benefit from the appropriate facilities of the bank.

Sheikh Hosseini stated: During the previous years, the available capacities were not used optimally for the benefit of the cooperative sector, and while the majority of the rural economy was based on cooperatives, less than 10% of rural and nomadic employment facilities were given to cooperatives. became

This banking official explained: Economics is the science of allocating limited resources for unlimited needs, it is appropriate to equip the financial resources of the cooperative sector in the cooperative development bank, and the bank, as an intermediary and with proper management, directs the resources to the real sectors of the economy. , producers, small and medium enterprises and the biggest examples of them are cooperatives, and the inflationary effect of money creation and liquidity should be curbed through increasing production.

Sheikh Hosseini reminded: It is important to use new methods to finance the cooperative sector, and one of the positive aspects of the new methods is that it does not contradict the Central Bank’s balance sheet control, because most of these items are not placed on the right side of the banks’ balance sheets and mainly They are placed under the balance sheet line. Digital banking and the use of digital tools are also expanding for new financing.

He continued: The vision of Cooperative Development Bank has been drawn in such a way that it is considered as the best bank in the country in the field of providing digital services to cooperatives and small and medium enterprises.

Sheikh Hosseini explained: Among the new financing tools is the payment of facilities in the form of Gam bonds, which can be used in the bank, as well as debt financing tools, sukuk and murabaha bonds can also be used, according to the 60 thousand billion Rials financing plan. The financing of the Cooperative Bank is in this way, which is about 10 thousand billion Rials.

He continued: financing the production chain, contract production and agriculture, letters of credit are also other modern methods of financing.

The Managing Director of Tehseh Cooperative Bank said: Collective micro financing has also been operationalized in the bank, and last year, as the first bank, 15 projects worth 250 billion Rials each were supported by Tehseh Tehsav Bank through the SCF platform. This year, more than 10 projects have been financed in this way.

It should be mentioned that the Cooperative Development Bank, as a special sponsor of the event, will pay 5 billion Rial facilities with preferential interest to 14 top cooperative companies in Tehran province.