The plans of the central bank for non-inflationary support of production were explained
According to the financial news report, quoted from the public relations of the central bank, Ali Saleh Abadi, participating in a special interview with Sima, explained the plans and achievements of the central bank, stating that one of the tools that the central bank uses to strengthen enterprises. Financing is a chain, he said: In the past, companies used to go to banks to receive facilities, and all of them asked for cash for their economic activities, while the issue of chain financing started at the end of last year with the cooperation of the Ministry of Security. that the need of companies to ask for cash has been greatly reduced by using this method.
Emphasizing that one of the important tools of chain financing is the use of step bonds or productive credit certificates that the company instead of receiving money from the bank and paying it to the company that supplies the raw materials it needs. They use these bonds, he added: These bonds were launched at the end of 2019 and until July of this year, about 8.8 thousand billion tomans have been used. In this regard, the Central Bank has eased the regulations of these bonds in the Money and Credit Council and a proper incentive package. we did. Banks were also invited to use these bonds.
Issuance of 11 thousand billion tomans of Gam bonds in the last two months
Dr. Saleh Abadi stated that fortunately, in the last two months, 11 thousand billion tomans of these bonds have been used to finance companies, saying: in other words, 8.8 thousand billion tomans in the last two months, and 11 thousand billion tomans in the last two months. These bonds have been used to finance companies.
20% of companies will be financed with bonds next year
The Governor General of the Central Bank stated that it is expected that in the coming months the use of Gam bonds will grow at a very good rate and next year 20% of the working capital required by the companies will be financed through these bonds and added: Therefore, as much as possible If these tools are deepened, it can be a great help to the production sector, and companies’ need for liquidity will decrease, while their work will not be delayed.
Reduction of 19 percentage points of inflation since the beginning of the government until now
The head of the central bank said about the situation of monetary variables and the difference that has happened in this government compared to the past: the situation of monetary base growth has improved by the end of July, and monetary base growth has reached 26.2% and liquidity has reached 37.4%. it is arrived.
Ali Saleh Abadi stated that 2.5 percent of this number is related to the statistical coverage of Mehr Ekhtaz Bank, which by deducting the liquidity reaches 34.9 percent and thus the growth of liquidity has improved. And the central bank has plans to improve this situation.
Emphasizing that inflation has reached 40.1% from 59.3% at the beginning of the government, Saleh Abadi added: Although we had global inflation in recent months, since the end of last year this global inflation in European countries, America and… increased sharply. Of course, at the beginning of the year, we had an inflation caused by the popularization of subsidies, for example, in June of this year, the inflation reached more than 12%, which was caused by this, which, of course, was a cumulative inflation caused by the reform of the preferred currency. It used to happen every time this plan was implemented, but thank God its effects were removed in August and inflation reached 2% per month in this month, so the effects of the popularization of subsidies were removed in August. So now we are back to normal.
Liquidity control will continue
The Governor General of the Central Bank stated that several measures are being taken to control liquidity and the monetary base, which should be continued, and clarified: One of these measures is related to the relationship between the government and the Central Bank, which is a controversial issue, which the government has tried to Other alternative methods can use the resources and not be complacent.
The highest official of the central bank regarding the control of bank overdrafts also said: control of bank overdrafts has been a key axis in the agenda of the central bank and can help control liquidity.
He added: In total, since the beginning of this year, the government has issued and sold 34 thousand billion tomans of bonds, of which 12 thousand billion tomans have been bought by banks and 22 thousand billion tomans by funds and other investors. It is a good thing that banks are not the only buyers of these bonds. Although banks allocate 3% of their deposits to the purchase of government bonds according to the approval of the Money and Credit Council, but since the beginning of the year, 35% of these bonds have been purchased by banks and the other 65% have been sold to non-banks. .
He emphasized: “This is a good thing, of course, the central bank is trying to deepen the interbank market, and soon it will be possible for banks to trade these bonds with each other.”
Granting 1,000,000 billion Tomans of facilities to different sectors
Referring to the meeting of the government delegation with the Supreme Leader, Saleh Abadi said: “Yesterday, we were in the service of the Supreme Leader. Hazrat Agha made a very important point that the strictness of the Central Bank regarding the balance sheets of the banks is a good measure and it should be continued, but care should be taken that the capital It was his order to ensure the circulation of the production units, which is a very important point.
He added: Based on the observations made by the banks, during the four months of this year, 1,000,000 billion Tomans of facilities have been paid to different parts of the country, including households and companies. Of this amount, 66% has been paid to the working capital of companies and 12.8% to create new companies and the rest to households and other economic sectors, so this category is considered by the Central Bank so that we can strengthen this sector.
Controlling the growth of banks’ balance sheets based on health indicators
Saleh Abadi said regarding the control of the balance sheet of the banks: one of the axes that is followed in this field is the control of the balance sheet of the banks, the bank can have between 1.5 and 2.5 percent growth of the balance sheet, which is through The central bank’s regulatory systems are controlled and if a bank does not comply with this limit, the bank’s legal deposit will increase from around 10 to 12 percent to 15 percent, which is its executive guarantee.
He added: “Now there are about 6 banks that are higher than this index, of course, for Qarz al-Hasna banks that pay micro-facilities to households and different sectors, they can have between 4.5 and 5 percent balance sheet growth.”
The head of the central bank added: the growth of the banks’ balance sheets will return to the legal track through the legal deposit instrument of the banks, and if necessary, the issue of the delinquent banks will be referred to the banks’ disciplinary board.
He added: Banks are ranked based on the indicators determined by the bank health assessment, and based on the balance and imbalance indicators, good and healthy banks are ranked at 2.5% and troubled banks at 1.5%. are ranked. With the legal deposit growth policy, it is practically not in the favor of a bank that wants to violate.
Six banks have more than 2.5% growth, which should be corrected immediately
He added: “Now, six banks have more than 2.5% balance sheet growth, which are on the path of improvement. The basis of evaluation of banks is the same formula until the end of Azar month, and after this date, further decisions will be made.”
Authentication of 400,000 people electronically from the beginning of the year to the end of July
The Governor General of the Central Bank stated that in order to facilitate people’s access to the banks, the possibility of face-to-face authentication has been provided for the customers and said: Identity authentication is done for a person without the need to visit the banks in person, which according to reports from the beginning of the year to At the end of July this year, about 400,000 people were authenticated in absentia.
He added: Electronic promissory note is one of the measures that provides people access to the banking system without being in the bank, and so far 250 thousand people have used electronic promissory note.
Payment of 20 thousand billion tomans for housing deposit facility
The Governor General of the Central Bank stated that we have increased the loan facilities to 200 million tomans for natural persons and stated: 418 thousand marriage facilities have been paid in the amount of 58 thousand billion tomans from the beginning of the year to July.
He added: Also, 315,000 child bearing loans have been paid in the amount of 13,000 billion tomans, which is a total of 71,000 billion tomans, while last year a total of 80,000 billion tomans were paid for marriage facilities.
According to Saleh Abadi, until the end of July, 20 thousand billion tomans of housing deposit and construction facilities have been paid.
He added: Yesterday, the regulations and rules of Qarz al-Hasna funds were approved by the Money and Credit Council, which will be announced soon, and Qarz al-Hasna funds will also be organized within the framework of these regulations, and new licenses will be granted in the form of these regulations. It will help households to get the micro-facilities they need.
Collecting more than 30 thousand billion tomans of liquidity from the market
Regarding the interbank market, Saleh Abadi said: Another work that is being done to reform the banking system is the reform of the capital structure of banks. In this regard, 23 banks are required to increase their capital.
The head of the Central Bank said: Banks used to sell the bonds purchased from the government to the Central Bank. Last year, there were 102 thousand billion Tomans of bonds in the Central Bank’s portfolio, and this figure has now decreased to about 70 thousand billion Tomans. It means the collection of more than 30 thousand billion tomans of money from the market, this matter was effective in reducing liquidity and increasing the monetary base.
Saleh Abadi stated: Another important measure that was carried out in cooperation with the tax organization is the organization of 18 million payment gateways and card readers, so that now we do not have a card reader or a gateway that does not have an ID card. This is a very important event in the monetary and banking system.
Reducing the need to ask for cash by returning the credit to the check
He further added: Another issue is the check law, which, of course, has been implemented for two or three years, and fortunately, we can say that this law has been implemented almost completely, except for one clause, which also has its own considerations. The check law has several sections, one of which was the connection of the integrated check issuance system. A very important thing that happened in recent months was the issue of blocking the accounts of individuals who issued checks but had no balance.
In this regard, the Governor of the Central Bank reminded: According to the law, if a person issues a check and the recipient notices that the account is empty, the issuer’s accounts in the entire banking network will be closed to the amount of the check. This work has reduced bounced checks and people who issue checks have to exercise more discipline, because when a check is bounced, the recipient must look for the bad effect that comes back to the check with this method of credit.
He added: “One of the most important payment tools in the banking network is a check, and when people are not sure about it, they turn to cash tools. As much as we make non-cash tools more valid and people use them, the need for cash will be less.” Therefore, if someone receives a check, in addition to being registered in the relevant system, the recipient can also check the issuer’s credit on the central bank’s website.
Salehabadi reminded: There is one part left of the check law, which is the definition of credit for a check according to the law, which was criticized in the Money and Credit Council, and the concern was raised that it may disrupt businesses and create problems that Measures were taken to avoid any problems.
The currency market is stable and calm
The Governor of the Central Bank continued to remind: Another action of the Central Bank in the past year was the activities of the foreign exchange market. Fortunately, despite the fluctuations in the currency market, it has enjoyed a good stability and the central bank has taken several measures in this regard. The consensus market that was implemented in the last two months, with the depth it gave to the currency market, caused stability in the currency market.
Stating that the integrated currency market has gained more depth, he said: Currency exchanges that have happened with friendly and cooperative countries are good events, but not all of them can be mentioned. Good things have happened in the field of remittances and currency notes, and the provision of foreign currency by the central bank during these few months was about 26 million dollars.
Regarding the payment of foreign currency to Karbala pilgrims, Saleh Abadi added: Every pilgrim can buy 100 dollars or the equivalent of 150 thousand Iraqi dinars. About 700 bank branches of Saderat Bank, Mellat Bank, Tejarat Bank and 220 exchange offices provide these services. In addition, in the three provinces of Ilam, Kermanshah and Khuzestan, ATMs will be able to withdraw up to 500,000 Tomans during Arbaeen, and mobile ATMs have also been prepared.