Transfer of compensations to Iranian bank account remains unchanged

Business Materials 27 July 2011 13:57 (UTC +04:00)

Iran Azerbaijan, Baku, July 27 /Trend/

The government has not changed the sum of transferring compensations which would result in the removal of subsides from peoples' bank accounts, Iranian daily Jahan e Sanat reported quoting Iranian Deputy Economy Minister Mohammad Reza Farzin as saying.

"Despite increasing the number of applicants for receiving compensation from 62 to 72 million, the amount of money which would be transferred to citizens' bank accounts will remain unchanged", he said.

The Iranian government cut subsidies for commodity and energy products in December 2010.

According to Iran's general budget for the current solar year (which began on March 21, 2011), the government will save $54 billion during this solar year after removing subsides. Half of the sum, $27 billion, would be transferred to citizens' bank accounts at $44 per citizen, 30 percent would go to the industry sector, and 20 percent to the government's current expenditures.

Meanwhile, the government said it transferred $21 billion only during the first half of the year to citizens' bank accounts.

Ahmadinejad had to borrow $5 billion from the Central Bank of Iran to transfer to citizens' bank accounts.