The need for government support for the Cooperative Development Bank

According to the financial news report, citing public relations, Jaafar Qadri, a member of the Program, Budget and Calculations Commission of the Islamic Council and the representative of the people of Shiraz in the parliament, about the need for the government to support the Cooperative Development Bank and support the granting of loans to the production sector for the development of production and Supporting Production Cooperatives He said: Cooperatives are a part of the country’s economic structure, and supporting them is necessary for the prosperity and growth of production. To realize production growth, it is important to focus on the right policy regarding joint-stock companies or project funds, because they can create a good opportunity to develop production activities in the cooperative sector.
In this regard, he added: Although the support of cooperatives must be conditional and the supervision of this sector must be done properly, there are still limitations and problems for them, therefore, monitoring the performance of cooperatives is very important for the benefit of producers and investors.
Qadri further noted: “Certainly, the cooperative and joint-stock sector can be a significant contribution to the entry of small capital into the production cycle.” For this reason, the support of the government to the cooperative development bank and the cooperative sector is very important to solve part of the problems of farmers who have the problem of providing collateral to receive bank facilities.
This member of the Islamic Council explained about this: The Islamic Council is trying to solve this problem under the production and infrastructure supply law so that support is formed as guarantee inputs to support the development of production in the cooperative sector, especially the rural cooperative.
In this regard, he clarified: In the sense that, for the development and support of rural production cooperatives, a support fund for the agricultural sector should be established in different sectors so that people can deposit in this fund. Therefore, their guarantee makes it easier for the banking system to give loans to them. One of the reasons why the banking system does not give loans to some people is the lack of collateral.
He stated in this regard: Considering that the farmer has agricultural land and house in the village and because banks do not accept agricultural land and rural houses as collateral, the farmer cannot use the loan from the banking system to develop his business, but the validation institutions With the help of agricultural jihad, they can accept agricultural lands and houses of farmers as collateral to be considered as a guarantee facility and the farmer can use the loan to develop his activity.
He pointed out: With such a formula, cooperatives can use bank facilities to grow production in their sub-categories. The Islamic Council tries to solve the various problems that the cooperative sector is dealing with as much as possible by simplifying the laws in various fields.