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Bank-i-Milli Afghan to grant loans to industrialists

Bank-i-Milli Afghan to grant loans to industrialists

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On
Jun 21, 2015 - 17:17

KABULinfo-icon (Pajhwok): Bank-i-Milli Afghan on Sunday announced to grant $100 millions in Islamic loans and another $100 million with modest interests to domestic industrialists.

An agreement in this regard was signed by the bank and Afghan Association of Industries in Kabul.

Ahmad Khusraw Zia, Bank-i-Milli Afghan chairman, said the loans were for three month periods up to five years.

“We have allocated $100 million for development of factories and purchase of machinery and another $100 million through Islamic banking for purchase of machinery and raw materials,” he added.

The ordinary loans, Zia added, would have from 6.5 percent up to 9.5 percent interest.

“No cash would be paid to any industrialist. They would propose to buy raw materials from a company. Then the bank would coordinate with the company and would buy the material only to sell it to industrialists with some profits,” he added.

Zia said the loan receiver then would have to pay for the material and its interest after three months. He added the loans would be proportional to the need of a company.

Sakhi Ahmad Paiman, head of the Afghan Association of Industries, welcomed the initiative, saying the agreement would facilitate the way loans were paid. He said this was the first time a bank in the country took the initiative.

Najib, head of a plastic factory, welcomed the move saying his factory had been closed due to lack of financial means. These loans with less interest, he added, would enable him to restart his business.

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