Iran Petchem Sector Sees Significant Credit Expansion

Iran Petchem Sector Sees Significant Credit Expansion
(Saturday, April 13, 2024) 13:27

TEHRAN (NIPNA) - Iran's National Petrochemical Company (NPC) has announced a substantial increase in credit allocation to downstream industries, reaching approximately 80 trillion Iranian rials from the beginning of Farvardin to the end of Esfand in the Persian calendar year 1402 (which ended on March 20, 2024).

Abbas Gholami, the Director of Downstream Industries Development at NPC, revealed that petrochemical complexes operating in the country's commodity and energy exchange markets allocated around 6.5 trillion rials in credit during Esfand.

Highlighting the ongoing efforts to revitalize production units, Gholami emphasized NPC's encouragement of petrochemical companies to extend credit lines for their products.

"The total amount of credit sales in both the exchange markets and direct sales constituted 53% and 28% of the total, respectively," Gholami stated.

The credit allocation trend witnessed a significant surge from Farvardin, where it stood at 3.2 units, to Esfand (the 12th month in the Persian calendar), reaching approximately 6.5 units, according to data provided by the NPC. This increase reflects the concerted efforts to overcome production hurdles and ensure the availability of liquidity and capital for downstream industries in the petrochemical sector.

NPC's strategy aims not only to revive industrial units but also to accelerate the development of final products, maximize value-added, and boost employment opportunities across the country.

The substantial credit expansion underscores the pivotal role of the petrochemical sector in driving economic growth and fostering industrial development in Iran.

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