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Iran bank to fund plane purchases
Iran says a plan is on agenda to provide funds to companies to buy planes.
By Presstv.com
. Iran says it is studying a plan to create a fund to provide loans to enable domestic businesses to purchase planes.
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Maqsood As’adi-Samani, the secretary of the Iranian Aviation and Space Industries Association (IASIA), said on Tuesday that a plan to the same effect has been presented to the relevant authorities.
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As’adi-Samani told Fars News Agency that the plan envisages the creation of a bank by the IASIA, stressing that the bank will answer the existing shortfalls in budgets of domestic companies for purchasing planes.
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He emphasized that this is a shortcoming that needs to be addressed by the banks and financial institutions “as is customary in other countries”.
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“Iran’s aviation companies are unable to provide all the required funds to buy planes by relying on their current revenues,” said As’adi-Samani.
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The official further said the establishment of IASIA’s own bank – which he said could be named the Air Transport Development Bank of Iran – can eventually help with the renovation of Iran’s aviation fleet.
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He emphasized that the required funds for the proposed bank will be provided from the National Development Fund (NDF) as well as certain related financial facilities.
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“The NDF previously provided funds to companies to buy planes through banks but required guarantees above the value of their assets,” As’adi-Samani.
“But this problem has been resolved and the government can now accept planes as guarantees for the loans it pays the companies.”
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Iranian officials announced last week that the country plans to place orders with aviation giants Boeing and Airbus to purchase up to 90 planes per year until 2020.
.
The country says it needs above 400 civilian aircraft worth at least $20 billion in the next decade to renovate its aging fleet.
.
Maqsood As’adi-Samani, the secretary of the Iranian Aviation and Space Industries Association (IASIA), said on Tuesday that a plan to the same effect has been presented to the relevant authorities.
.
As’adi-Samani told Fars News Agency that the plan envisages the creation of a bank by the IASIA, stressing that the bank will answer the existing shortfalls in budgets of domestic companies for purchasing planes.
.
He emphasized that this is a shortcoming that needs to be addressed by the banks and financial institutions “as is customary in other countries”.
.
“Iran’s aviation companies are unable to provide all the required funds to buy planes by relying on their current revenues,” said As’adi-Samani.
.
The official further said the establishment of IASIA’s own bank – which he said could be named the Air Transport Development Bank of Iran – can eventually help with the renovation of Iran’s aviation fleet.
.
He emphasized that the required funds for the proposed bank will be provided from the National Development Fund (NDF) as well as certain related financial facilities.
.
“The NDF previously provided funds to companies to buy planes through banks but required guarantees above the value of their assets,” As’adi-Samani.
“But this problem has been resolved and the government can now accept planes as guarantees for the loans it pays the companies.”
.
Iranian officials announced last week that the country plans to place orders with aviation giants Boeing and Airbus to purchase up to 90 planes per year until 2020.
.
The country says it needs above 400 civilian aircraft worth at least $20 billion in the next decade to renovate its aging fleet.
