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Iran government debt to banking system up by 25.5%

Business Materials 17 October 2016 11:39 (UTC +04:00)

Baku, Azerbaijan, Oct. 17

By Fatih Karimov – Trend

Iranian government's debt (including state-run companies) to the banking system has reached 1373.1 trillion rials (each 31,639 rials making one USD) by Aug. 21.

The figure doesn’t include debts of government and state-run companies to the Central Bank of Iran (CBI).

The figure was 1094.2 trillion rials last year (Aug. 21, 2015), registering a 25.5 percent increase year on year, the CBI said Oct. 17.

The debt has increased by 12.7 percent in comparison with the end of the last fiscal year (March 20, 2016) which had the figure at 1218.3 trillion rials.

The government debt to the banking system witnessed a rise by 26.2 percent by Aug. 21, while compared to the Aug. 21, 2015 and stood at 1334.1 trillion rials.

Meanwhile the debts of Iranian state-run companies to the banking system stood at 39 trillion rials by Aug. 21, 5.4 percent more year on year.

Iran's banking system has been struggling with bad loans in the past few years. Banks of Melli, Parsian, and Tejarat have the highest amount of bad loans in Iran.

The CBI report also indicates that the debts of Iranian banks and credit institutions to the central bank reached 918.4 trillion rials by Aug. 21, 9.1 percent more year on year.

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