310-Hemmat Jump in Chain Instruments; Non-Inflationary Financing Revolution in Industry

A twelvefold jump in the issuance of Gam and electronic Baraat bonds to 310 hemmat promises a structural shift of industries toward non-inflationary models and control of money creation.

According to Mehr reporter, the volume of issuance and exchange of new means of financing the production chain, including promissory notes and electronic bills, has crossed the border of 310 thousand billion tomans with an unprecedented and twelve-fold growth. This new record, beyond a mere statistical jump, reflects a fundamental transformation in the interaction model between the banking network and the real sector of the economy. For decades, the production structure of the country depended on the continuous injection of Rial cash facilities; A risky mechanism that was accompanied by stimulating the monetary base, growing liquidity and igniting inflationary expectations, and finally depreciated its positive effects in an erosive cycle of skyrocketing spending. However, the serious implementation of monetary discipline policies and the control of some banks' balance sheets on the one hand, and the intensification of companies' thirst to maintain working capital caused by cost shocks on the other hand, led the policymaker to deepen chain credit instruments; Tools that enable production circulation without relying on money printing.

The strategic turn of industries from cash facilities to chain credits

The main motivation for the migration of economic enterprises towards electronic invoices and promissory notes should be sought in the impasse of traditional models. In the past periods, the intense competition of producers to receive liquidity loans put a tremendous pressure on the powerful resources of the central bank, and in practice, a large part of the granted credits were also diverted from the main path or trapped in parallel speculations. Now, the architecture of the supply chain is designed so that credit, instead of creating cash, circulates in the form of documentary and electronic commitments directly between production lines and upstream suppliers of parts and materials. This process has led to the settlement of a large amount of outstanding inter-company obligations and claims, without the need for physical Rials, and the historical monopoly of banks in the distribution of cash credit rent has collapsed.

Amirhossein Davoudpour, the Chief Financial Officer of one of the groups active in the metal and component industries, while evaluating this development in the production lines, says: "The reality is that the facility bottleneck caused by the control of the banks' balance sheets pushed many lines to the brink of a complete stop; Because it was practically impossible to buy credit from upstream companies. In such a situation, the entry of Gam papers into the supply chain reopened the dead-end path of exchanges. By accepting these documents from the downstream customers and handing them over directly to the ingot and sheet factories, we were able to settle most of the purchase obligations without paying a single Rial note. The fundamental advantage of this method is the elimination of heavy bank interest costs in the middle stages of production and the end of long-term waiting for the approval of the cash credit limit in bank branches; An advantage that keeps the flow of raw materials to the workshops continuous.

The knot of discount in the capital market and the mystery of liquidity

Despite the impressive efficiency of this mechanism in transferring value between production circles, its final function is always dependent on the conditions and capacities of the secondary market. One of the most important concerns of companies is the fate of papers at the end stations of the chain; The point where the company is forced to cash its documents before the due date to pay current expenses such as wages, taxes or freight. The experience of recent months has shown that without developing the depth of the capital market and facilitating the acceptance process, yield rates to maturity can impose an unwanted financial burden on the final holder of bonds. If the traction of the stock market in attracting these instruments is not synchronized with the volume of 310 shares of issuance, the risk of increasing the discount rate will appear and the attractiveness of using bonds among the second and third tier suppliers will be doubted.

Mehrdad Soleimanifar, the head of the financial commission of one of the parts manufacturing industrial organizations, reminds about the test of the secondary market: "Gam papers record the highest economic efficiency and the lowest financial cost as long as they are transferred from one producer to another supplier in the chain. But the blind spot of the chain appears when a small workshop unit needs micro-liquidity and sees no other way than offering bonds on the stock exchange board. If the stock market and fixed income funds do not have the necessary resources for smooth and cheap discounting of these bonds, the final holder will face a sharp drop in value. Therefore, maintaining the current boom requires deepening the liquidity guarantee mechanisms and discovering the fair rate in the secondary market so that companies do not have to worry about liquidity for frequently accepting bonds.

electronic bill; Agile supplement for small and medium industrial transactions

Along with the step paper tool, which is more suited to large-scale transactions and large-scale holdings, the acceleration of electronic invoice deployment has created a complementary and flexible platform for a wide range of small and medium-sized companies. Electronic bill of lading has been able to deepen the penetration of chain tools in the downstream layers of the supply network due to the easy issuance process, little administrative bureaucracy and a significant reduction in operating costs compared to traditional guarantees and letters of credit. This financial document, without the need to directly enter the complex structure of the stock exchange, provides the possibility of endorsement and instant electronic transfer, and guarantees the reliability factor of settlement of claims in a transparent environment without forgery of documents, a phenomenon that has minimized transactional friction between business partners.

By comparing the structure of these two tools, Faramarz Rostgarmanesh, an expert in the field of financing industrial enterprises, states: "Electronic bill of exchange is a vital innovation for the popularization of chain financing. Small industries are usually not able to meet the heavy conditions of admission to the stock exchange or complicated bank guarantees, but through electronic bill of exchange, they can convert the credit of their valid customers into credit liquidity and buy the materials they need from the first-hand markets. The speed of circulation of credit in this platform is much higher and it eliminates the possibility of depositing resources. The systematic integration of tax, customs and banking systems with electronic bills of lading has brought the transparency of the supply chain to a level that minimizes the possibility of fake transactions and fake invoicing and guarantees the authenticity of the transaction.

Stabilizing the non-inflationary model with the convergence of governing institutions

In order to continue this great transformation and bring its value to higher levels in the coming years, the complete coordination of the economic pillars of the country is vital. One of the strategic steps that strengthened the acceptance rate of Gam bonds in recent months was the agreement of government agencies to clear these bonds in tax payments, customs duties and bills of energy carriers. This structural decision caused the final links of the chain to no longer bear pressure to sell bonds at unrealistic rates on the stock exchange board and to be able to pay their governance obligations directly with these documents. Such synergies have effectively transformed the flow of credit into a dedicated settlement currency in the production sector, immune to the ravages of speculative markets.

Finally, the volume of electronic promissory notes and promissory notes exceeded 310 thousand billion tomans, indicating that production growth engines can be kept running without borrowing and inflationary overdrafts. The continuation of this path promises to reform the old economic paradigm and establish a development-oriented credit system in the country; Provided that the monetary policy maker, along with the quantitative development of these instruments, prioritizes the supervision of the settlement systems and the discipline of the discount rates so that the national production can follow the path of non-inflationary prosperity in a safe and stable environment.