The memorandum of understanding between Saderat Development Bank and Small Industries Investment Guarantee Fund was signed
According to financial news, the Export Development Bank of Iran and the Small Industries Investment Guarantee Fund had signed a memorandum of understanding on the issue of credit guarantees in favor of the Export Development Bank of Iran on the 20th of April 2016 to cover the deficit of the collateral for facilities granted to applicants for small industries.
Now, after several years of cooperation between the parties, the addendum to this memorandum was signed by Mohammad Jaafar Mazdeh, the head of Iran Export Development Bank, and Mohammad Hossein Moghiseh, the CEO of the Small Industries Investment Guarantee Fund, on the sidelines of the INOX 2023 exhibition.
The head of the Iran Export Development Bank said in a speech on Wednesday (Wednesday) in this ceremony: Today, in line with the inherent duty of this bank and to help small and medium enterprises, we signed a memorandum of understanding with the Small Industries Investment Guarantee Fund, so that with the guarantee of this fund, industries small to benefit from the bank’s facilities.
Mohammad Jafarmezdeh added: Large units can refer to the capital market for their financing, but small units do not have such a possibility, so this memorandum provides them with access to the facilities of the Export Development Bank.
He pointed out that it is better to approach the country’s banking system to finance small and medium industries.
The CEO of the Small Industries Investment Guarantee Fund also said about this memorandum: By signing this memorandum, we seek to guarantee the facilities of export-oriented small and medium industries.
Mohammad Reza Moqiseh added: 92% of the country’s industries are small and medium-sized industries, and we hope that by signing the addendum to this memorandum, we can take a step towards supporting export-oriented small and medium-sized industries.
He announced the limit of guarantee from Saderat Bank’s facility of 5 billion tomans based on this memorandum and expressed hope that this limit will be increased by the end of the year due to the increase in inflation and currency rates.
According to one of the clauses of this memorandum, the fund’s guarantee limit for each applicant is 50 billion rials, which covers 70% of the principal and interest of the bank’s facilities. Also, the limit of this guarantee in deprived areas is up to 85%.
Therefore, the Small Industries Investment Guarantee Fund has committed to pay the amount to the bank if the applicant fails to repay the principal and interest of the debt up to the amount specified in the issued guarantee.
Also, the Export Development Bank of Iran, in case the applicants are introduced by this fund, will pay for the granting of facilities only by obtaining the guarantee of the fund as a part of the applicant’s documents.
The term of validity of this memorandum is one year, and if each of the parties does not inform the other party in writing of their unwillingness to extend it one month before the expiration of the term, it will be considered extended for the same period, and that’s it. The arrangement will be generalizable for the next courses.
Therefore, in case of termination or non-renewal of this memorandum, the provisions of this memorandum will remain in force until the deposit of all the bank’s claims arising from the guarantees issued in the bank’s currency by the fund, subject to the request for the extension of the guarantee before the expiration date and the receipt of the second copy, sealed and signed by the bank. It will remain.