Iran’s industry minister says Central Bank to provide 4000 trillion rials in new SME loans

Iran’s Central Bank has pledged to allocate an additional 4000 trillion rials in loans to small and medium-sized enterprises (SMEs), Industry, Mining and Trade Minister Mohammad Atabak said on Saturday.

Speaking at a meeting with entrepreneurs and businesspeople in northwestern province of Ardabil, Atabak said working capital for production units was the main demand raised by business representatives and had been addressed in the government’s support programs. He said a support package introduced on January 7, 2026, was initially designed to assist SMEs, but subsequent assessments showed that a significant share of its financing had gone to large companies. The Central Bank had therefore committed to providing an additional 4000 trillion rials specifically for smaller businesses. Atabak also called for greater support for exporters, saying foreign currency constraints had affected some trade policies. Encouraging producers to export and offering them incentives would help generate more foreign currency for the country, while restrictive export regulations could undermine exports and foreign exchange earnings, he added. Referring to the gap between producer and consumer inflation, the minister said consumer inflation stood at 83% and producer inflation at 117%, indicating a substantial rise in production costs. He warned that continued increases in production costs could erode the competitiveness of domestic manufacturing, leading to lower output and employment, while adding to inflationary pressure on consumers.