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Supporting Small Scale Industries
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M. Radnia, Chairman & Managing Director of Bank of Industry & Mine |
Bank of Industry & Mine was
established in October 1979 according to the Bill of Banking Affairs as the
sole development bank of Iran’s industrial and mining sectors, with an initial
capital of 41 billion rials. When the Ministry of Industries and the Ministry
of Mines and Metals were merged into a single ministry called the Ministry of
Industries and Mines, Bank of Industry & Mine also joined the new
ministry—while saving its own legal, financial and administrative identity. A
law in this regard obliges the bank to fulfill the following responsibilities:
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Engaging in developmental
banking, while avoiding the running of companies and factories
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Granting facilities for
the creation, development, completion and improvement of industrial units,
with the priority given to small industries, whether they are active in the
hardware or software sector.
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Utilizing every possible
financial tool within the framework of the rules and regulations of the
Central Bank of Iran for enhancing and allocating the required resources for
the country’s industrial and mining sectors.
Aims and
Objectives:
The main objectives of
the Bank of Industry & Mine, as an economic institution, is utilizing the
capabilities of developmental banking operations, investing in line with the
country’s economic development, and creating an appropriate background for the
presence and participation of the private sector using all possible
institutions, processes and suitable tools in the field of industries, mines,
new technologies and related services.
The theme of the bank, as
stated in its article of association, is undertaking development banking
operations in line with the Bank’s objectives. Some of the main points of the
bank’s theme are as follows:
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Examining and
evaluating industrial, mining, and related service projects to determine
whether to grant facilities or not. This evaluation aims to ensure the
appropriate allocation of resources and supervision over the correct
execution of the abovementioned projects.
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Encouraging and
empowering people and companies to invest in the field of creation,
development, renovation, and improvement of the units engaged in industry,
mining, new technology and service activities.
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Cooperation and
participation in the creation of financial, technical and legal
institutions, as well as other specialized institutions.
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Providing the
financial resources required for production and service projects, through
granting facilities, making investments and legal cooperation.
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Procuring the
required financial resources and credits (in national and foreign
currencies) from domestic and international sources.
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Managing the
amounts entrusted to it, as well as the credits of the industrial, mining
and service sectors.
New
Policies:
In recent years the role of
the development banks needed to be changed in order to enable them to meet the
new requirements of their country’s developing economies.
In accordance with this
policy, Bank of Industry & Mine has also initiated some organization and
financial restructuring. The capital of the Bank was increased to 5000 billion
rials in 2001, 1637.4 billion rials of which has been paid and the remaining
is undertaken by the government.
In the 2002, to follow the
government policies regarding increasing investments and creating job
opportunities, Bank of Industry & Mine paid specific attention to small scale
industries by establishing Small Scale Industries Offices throughout the
country, and approved 536.7 billion rials of financial facilities for small
enterprises which has shown an increase of 32% compared to its preceding year.
Facilities
Granted to Projects:
In the year 2001, 148 medium
and large scale projects were approved to enjoy bank facilities totaling
2046.9 billion rials. Also a total of 536.7 billion rials was approved for 785
small scale projects. The grand total was 2583.6 billion rials for 933
industrial projects, which shows an increase of 28.5% (in amount) over the
preceding year.
In the year 2002, the
disbursement reached a total of 969.5 billion rials, which indicates 93%
increase over 503.3 billion rials achieved during the preceding year. The
Bank’s income reached the figure of 837.1 billion rials, which is an increase
of 20% over the 698.5 billion rials achieved the preceding year.
No. 593, Hafez Ave., Tehran - IRAN
Tel.: (+98 21) 890 10 40 - 889 90 38
Fax: (+98 21) 889 92 94
E-mail: Radnia@iran-bim.com |
