Company Activities
Financing
What is Finance?
The word finance literally means financing. Financing is a mechanism in which a contract is concluded between the country that needs financing and the supplying country, and a plan or project with the necessary foreign exchange capacity is financed by the financing country.
When the plan or project is put into operation, based on the amount of financing and interest belonging to that country, the borrower undertakes to provide the total cost of the plan or project in installments to the financing country. Financing is used for long-term loans.
In iran, financing is called financing to purchase equipment for production projects or a project, of course, in addition to financing and purchasing equipment, providing technical and engineering services for projects also includes financing. These services are performed using foreign credit facilities for a certain period of time, which is called a set of financing items. Among the acceptable activities in the field of finance should be mentioned the following : Purchase technology, capital equipment, and engineering technical services Financing covers 85% of the amount of the commercial contract. The method of repaying an 85% loan is usually a letter of credit. In such a way that 15% of the amount of prepaid or intermediate letter of credit is considered, but the remaining 85% will be removed from the financial facility.
According to article 62 of the general accounting law, the creation of financing documents for a ministry, state-owned company, organization, and others that use the public budget depends on the approval of the vice president for strategic planning and oversight to provide an equivalent forecast. Rials of principal and interest of facility installments in the annual budget of the country to be repaid on time.
In iran, financing is called financing to purchase equipment for production projects or a project, of course, in addition to financing and purchasing equipment, providing technical and engineering services for projects also includes financing. These services are performed using foreign credit facilities for a certain period of time, which is called a set of financing items. Among the acceptable activities in the field of finance should be mentioned the following : Purchase technology, capital equipment, and engineering technical services Financing covers 85% of the amount of the commercial contract. The method of repaying an 85% loan is usually a letter of credit. In such a way that 15% of the amount of prepaid or intermediate letter of credit is considered, but the remaining 85% will be removed from the financial facility.
According to article 62 of the general accounting law, the creation of financing documents for a ministry, state-owned company, organization, and others that use the public budget depends on the approval of the vice president for strategic planning and oversight to provide an equivalent forecast. Rials of principal and interest of facility installments in the annual budget of the country to be repaid on time.
