Karafarin Bank Signs MOU with Iran National Innovation Fund (INIF)

Karafarin Bank signed an MOU with INIF at the Coordination of the Banking Network to Support Knowledge-Based Companies Conference which was held on Wednesday 30 September, Public Relations reported.

This conference was held in presence of administrative secretary of the President of Iran, Mahmoud Vaezi; vise-president of Iran in scientific & technological affairs, Sourena Sattari; head of INIF, Ali Vahdat; and Dr. Mohammadreza Farzin, the managing director of Karafarin Bank.
Karafarin Bank signed the mentioned MOU with the aim of further utilising and developing the capacities of knowledge-based and technology companies and startups (for the purpose of developing a knowledge-based economy in general), as well as further developing financial tools.
In this conference, having pointed out to the effective role of knowledge-based companies, Mahmoud Vaezi, stated: “Knowledge-based, technological companies as well as startups successfully managed to answer to the needs of the Country at times of crisis arising from the coronavirus pandemic. Therefore, it is necessary to support them in order to overcome Iran’s future shortcomings.”
“INIF is the biggest supporter of knowledge-based companies and shall provide more support in cooperation with Iran’s banks.” He continued.
He also stated: “In the past Iran’s banking sector did not support young people in knowledge-based companies. Yet thanks to the efforts of INIF and with the aid of banks as correspondents, more than IRR26 thousand billion in loans and IRR17 thousand billion in L/Cs were granted within 21 months, by the banks to such companies with favourable interest rates, repayment periods and review processes.”
Having expressed his gratitude to the INIF, Sourena, the vise-president of Iran in scientific & technological affairs commented: “Although some effective measures so far, have been carried out in this regard, knowledge-based companies need more support. Increasing the capacities of the Fund is the first step towards increasing support of such companies.”
“The IRR120 trillion sales of knowledge-based companies, the presence of 41 such companies in the Tehran Stock Exchange (TSE), the estimated IRR250 billion value of their services are the result of collaboration and support of all players in this field.” He added.
Ali Vahdat the head of INIF commented that the banking sector becoming involved in the technological and innovative sectors is particularly valuable. He further stated: “Whilst this collaboration offers support to knowledge-based companies, it is also rings an opportunity for the banks. Knowledge-based companies are some of the best customers of the banking system during harsh economic times.” According to Vahdat, the considerable progress of knowledge-based companies in 2018-19 is due to the support of the banking sector. “Without the Banking sectors’ backing knowledge-based companies would not have received financial support stemming from the resources of INIF.” He stated.
This MOU refers to accepting guarantors, issuing participation bonds, Sokuk (Islamic bond) as well as other capital market tools, establishing and managing an exclusive market-making fund for knowledge-based, technological companies and startups via Karafarin Bank. Furthermore, INIF shall cooperate with Karafarin Bank in reference to financially qualified applicants to the Bank and to provide necessary guarantees and to establish a fund for market-making the shares of knowledge-based companies.

Oct 5, 2020