Khodrocar - While letter makers have not yet responded to the president with a view to speeding up payment of the facilities, however, the makers hope that the conditions will soon be met for payment facilities, which will depend on the operating banks' cooperation because of projected amounts of bank resources. They are not expected to pay on this basis, which is where the central bank's entry into the matter may be required to pay for these facilities.
"Paying 100 thousand billion IRRs to auto industry has been approved. However, the payment of these facilities was met with resistance from the central bank, and eventually, by direct order of the president, was sent to the Monetary and Credit Council, which eventually reduced the amount of the facility.” Mehdi Motaleb Zadeh, deputy manager of part makers association told khodrocar reporter.
"The figure was reduced to 7300 billion tomans, provided that 5,000 billion tomans in cash were given to part makers as facility or to the sale of securities but it is not ready to pay yet because automakers have to re-evaluate to allow them to buy and sell bonds.” He added.
"From this 50 thousand billion only 30 percent has been paid to IKCO. SAIPA hasn’t receive any money. This means 15 percent of the facility has been paid to IKCO.” He said.
"According to carmaker estimates, the figure is around 35 trillion tomans, but carmakers say the figure is lower and the debt is 14 trillion tomans, which in one approach is correct for carmakers because they buy religion checks given to carmakers. It has been around 60 thousand billion IRRs but since the issuance of the check or the order issued by the automaker, it has reduced its debt to the maker while agreeing with the banks to buy the checks from the banks, especially at the end of the year.” He continued.
"If the check is repaid, the maker is obliged to pay the bank money, so the 140 thousand billion IRRs will still be credited to the automaker as debt is not yet settled.” He mentioned.
"Failure to approve the FATF bill will either block or restrict all financial transfers to Iran's origin. Due to the third round of sanctions, it was difficult to bypass raw materials and enter the country, and even though sanctions would still be able to bypass and purchase from abroad, due to the lack of liquidity of the power makers. Purchasing raw materials, on the other hand, has slowed the growth of warehouse production, thus requiring the warehouses to be completed as quickly as possible.” He said.
"Buying in-house raw materials is also done in cash if there is no liquidity to buy, so paying for the facility can provide the cutter's ability to buy raw materials as one month and a half to two months is a good time to stock up. But if the facility fails to pay, due to a shortage of raw materials, production will face serious challenges next year.” He said.
"These conditions, while at the end of the year, the makers have pledged their employment to 550,000, so we are in a disadvantage. Banks are reluctant to pay since this amount is not managed in the ranks of funds because it is costed by the banks' inventory, so the work is very slow and rigid and there is poor cooperation from the banks.” He said.
"The main problem is that politicians don’t aware of the importance of this industry for the country and they have to believe us.” He said.
While the makers say the need to get cash-backed facilities has been compounded by the adverse financial conditions they experienced in the past year, the government has greatly reduced their financial burden by anticipating the 40 thousand billion IRRs facility. As pressure mounts this year, it is expected that the government will continue to generate hope in the final days of the year.