CBI says cheap loans to startups topped $510m in quarter to June 21
The Central Bank of Iran (CBI) announced that the credit offered to startup businesses in the form of cheap loans topped $510 million in the quarter to June 21.
A CBI statement on Tuesday said that banks had paid a total of 127.1 trillion rials to 558 companies that are solely focused on science and technology ventures in the first quarter of the current Persian calendar year, Press TV reported.
The statement said the figure shows an increase of 247.4% compared to the similar period in 2020.
Top three main lenders offering cheap loans to startup businesses were Bank Melli, Bank Saderat and Bank Mellat, said the CBI, adding that the three banks had accounted for over 55% of the funds provided to the so-called knowledge-based enterprises.
Iran has invested heavily in supporting homegrown innovation and technology initiatives that could contribute to economic growth in the country.
The support is part of a larger government plan to diversify the Iranian economy away from crude oil and reduce its vulnerability to foreign sanctions.
Iranian President Hassan Rouhani said last month that the number of startups active in science and technology initiatives had increased by over 100 times in seven years, to more than 6,000 companies.
Experts believe support for knowledge-based companies has paid off, as the firms have contributed to Iran’s growing self-sufficiency in various fields of science and technology.
Science and technology startups have been a major help in Iran’s efforts to reduce the impact of US sanctions on the country’s manufacturing sector.