The chain financing instructions were communicated to the country’s banking network

In order to increase the efficiency and transparency of capital financing in the circulation of manufacturing companies, reform and upgrade credit policies, improve banking health indicators and increase the stability of banks’ balance sheets, as well as to accelerate and facilitate financing processes. The central bank of the Islamic Republic of Iran has put the development and promotion of chain financing methods on the agenda. In this regard, the “Guidelines for providing supply chain financing services by credit institutions” have been prepared with the concurrence of stakeholders, experts and experts, and have been approved by the Credit Commission and approved by the Central Bank Board of Directors.

Chain financing is a set of financing methods and operations such as discounting receivables, purchasing debt, agency, reverse agency, payment of facilities and securitization of receivables, which in the framework of chain methods, leads to improving the management of working capital of manufacturing enterprises. In this method, instead of the traditional way of receiving direct facilities by economic enterprises, the financing process of enterprises is continuous and along the supply chains and based on the actual flow of goods and services.

In chain financing, it is possible to use a variety of accrual methods to finance firms, which will reduce firms’ need for new facilities.

With the implementation of chain financing, the transparency and efficiency of the financing process will increase and the cost of the product will decrease, and while facilitating and accelerating the financing of enterprises, it will also help to stabilize and improve the balance sheets of banks.

It should be noted that the role of the central bank in the development of chain financing is the role of policy-making and regulation within the framework of the main missions, and the implementation of various methods of chain financing will be the responsibility of the banking network.

So far, part of the preparations for the implementation of chain financing has been provided in cooperation with the banking network and relevant executive bodies, and with the announcement of instructions and executive procedures, the pilot implementation of the plan will begin through some selected banks in limited chains. In this regard, the executive regulations for the use of electronic barter in chain financing as one of the tools used in this method have been approved and communicated to the banks.

It should be noted that gradually, with the completion of the infrastructure and receiving feedback from the project implementation process, its scope will expand to other fields of activities and other banks.

Guidelines for providing supply chain financing services by credit institutions 109 KB –