Strengthen and expand the production chain financing plan this year

According to monetary news quoting the public relations of the Central Bank, Salehabadi, Governor of the Central Bank in a meeting with the Minister of Silence and CEOs of selected banks, referring to the diversion and waste of resources in the old methods of granting facilities, regarding the financing method Production chain stated: By carrying out the production chain financing plan, it will be possible to monitor the correct consumption of facilities, which is one of the president’s emphases for the banking system.

The Governor of the Central Bank stated: “Any kind of incentive that is in line with the prosperity of production and can create sustainable employment is on the agenda of the Central Bank, and in this regard, we will use all banking capacity.”

Step papers are one of the new tools in financing the production chain

He continued: “Also, by using this plan with less resources, it is possible to support and provide working capital to more manufacturing enterprises, and compared to the old methods, much less pressure is applied to the financial resources of banks.”

Salehabadi described step papers as one of the new tools in financing the production chain and added: “With the amendments made to the executive instructions of step papers at the end of last year, an effective step has been taken to improve the performance and use of this tool.” We can take an important step in accelerating and expanding production chain financing.

The need for banking network training in accelerating the production chain financing process

The head of the Monetary and Credit Council, pointing to the importance of the role of banking network training in accelerating the process of financing the production chain, added: Excellent banking to teach the process of project implementation in operating banks.

The need for monthly reporting by banks

Referring to the importance of financing the production chain in the country’s economic complex, Salehabadi emphasized: Adherence to the schedule in the implementation and expansion of the use of this project is one of the requirements for the success of the project, so the report of actions taken by banks in this regard should be Provide a monthly plan to make future plans based on it and achieve the set goals.

The role of production chain financing in 8% economic growth

The Minister of Industry, Mines and Trade also considered the role of the production chain financing plan in achieving the goal of 8% economic growth to be crucial and said: “Due to the increase in production costs due to rising raw material prices, changes in allocation policies” Preferential currency and increase of wages and side costs of production, achieving economic growth will be possible only through working capital of manufacturing enterprises and increasing production capacity.

Fatemi Amin added: “The implementation of this plan will play an effective role in the jump in production, employment and economic growth, and therefore the Ministry of Silence and the Central Bank, in cooperation with banks, are seriously seeking to implement the production chain financing plan.”

The Minister of Industry, Mines and Trade in this meeting appreciated and thanked the efforts of the banking network in the past few months regarding chain financing and payment of facilities based on the invoices of the comprehensive trade system and said: the pilot phase of this work has been done and this year Accelerate and expand.

Production chain financing prevents resource diversion

Referring to the role of this plan in preventing the diversion of resources, he stated: With the implementation of this plan, the possibility of monitoring and achieving transparency in the use of facilities has increased, considering that the information of all chains can be monitored and witnessed a boom in the sector. We will be different economies.

Also in this meeting, with the proposal of the Ministry of Silence and the approval of the Central Bank, it was decided that from the beginning of May, facility applicants in seven provinces as pilots and in five selected industries must have electronic invoices from the comprehensive trade system.

In the second phase, from May 6, this requirement will be operational in all provinces of the country, and in the third phase, and from the beginning of June, all industries will have electronic accounts from the comprehensive trade system to use facilities related to production chain financing.

In this meeting, the report of the measures taken in 1400 in the production chain financing plan was presented as follows:

Formation of working groups

Establishment of a joint working group with the Ministry of Silence and the Ministry of Economy and continuous and active participation in the working group;

Establishment of joint working groups with selected banks and preparation of a chain financing business model;

Establishment of a contract agricultural working group with the participation of relevant agencies and active participation in the working group;

Communication of criteria

Approval and notification of the “Welfare Card connected to the chain” procedure;

Approval and notification of “Instructions for providing supply chain financing services by credit institutions”;

Approval and notification of the “Executive Procedure for the use of electronic barter in supply chain financing”;

Approval and notification of “Electronic Invoice Inquiry Circular”;

Approvals of the Government Economic Headquarters

Presenting the supply chain financing plan in the economic headquarters of the government and formulating the proposed approvals;

Review of the bank collateral bill in order to develop chain financing;

Develop supply chain financing incentive policies;

Review of the step-by-step instructions and its approval by the Credit Commission and the Monetary and Credit Council and notification to the banks;

Promotional measures

Presenting a chain financing model in joint meetings with banks, executive bodies, chambers of commerce, scientific centers and holding training workshops for managers and experts of the banking network;

The title of the 1401 production chain financing plan was also presented as follows:

Development of executive procedures

Approval and communication of the executive procedure of contract agriculture in supply chain financing;

Approve and communicate the executive procedure of factoring in supply chain financing;

Prepare, ‌ Approve and announce the reverse factoring executive procedure in supply chain financing;

Prepare, ‌ Approve and announce the executive method of financing the distribution network in supply chain financing.

Implementation of a chain financing plan in the industrial sector

Implementing chain financing in the automotive, home appliances, petrochemical, metals, construction, food and industrial machinery industries using “step papers”, “electronic bills” and “electronic bill-based chain facilities” through the country’s banking network.

Pilot implementation of a chain financing plan in the agricultural sector

Extensive implementation of chain financing of the agricultural sector based on contract agriculture with the participation of the Ministry of Jihad Agriculture and through the country’s banking network;

Incentive policies

Approval and notification of the chain financing incentive package

Development and improvement of tools

Develop and promote the use of step-by-step tools in chain financing;

Full operation of your electronic tools in chain financing;

Development of new financial instruments such as long-term domestic letter of credit, payment guarantee, credit card and electronic invoice in chain financing.

Extension and educational programs

Holding training workshops on methods and tools of chain financing for banks;

Compilation and publication of educational content for the banking network and companies.

Observation and monitoring

Preparation of a detailed map of supply chains;

Design and deployment of a chain financing management dashboard;

Preparation of “monthly performance report” of chain financing;

Preparation of “compliance report” separately for each bank;

The CEOs of the banks and the members of the board of directors of the selected banks also presented their obstacles, problems, as well as their solutions to improve the performance of the production chain financing plan.