March 15, 2019
The government will lend Iran’s two biggest carmakers a third of a billion dollars to help them pay off their debts to their multitude of parts suppliers who are sinking swiftly.
The huge bailout loan, however, totals less than a third of what the parts suppliers say they are owed.
Maziar Beiglou, the secretary of the Iran Auto Parts Manufacturers Association, told the Mehr news agency the details of the arrangement.
The government will lend 40 trillion rials ($333 million), half to Iran Khodro and half to SAIPA, which have not paid any of their suppliers even a single rial in the last four months. Beiglou said the suppliers are due 140 to 150 trillion rials ($1.16-$1.25 billion).
To make sure the carmakers don’t divert the money to other purposes, Beiglou said the carmakers must notify a designated bank of the amounts owed and the bank will make the actual payments.
During the third quarter of the Persian year, ending December 21, total car output was down 57 percent compared to the same quarter of last year.
No one explained how or when the loan was expected to be repaid.