Iran’s manufacturing sector owes $24.2 billion to domestic banks
Azerbaijan, Baku, Jun.22/ Trend R.Zamanov
Iran's manufacturing sector owes some 800 trillion rials (some $24.2 billion based on the price of USD at the free market) to domestic banks, Director of Tehran Chamber of Commerce, Industries and Mines, Yahya Al-e Es'haq said on Monday.
He also called for the payment deadlines to be postponed, the ILNA News Agency reported.
"Providing enough circulating capital is the main challenge facing Iran's manufacturing sector. Postponing the payment deadlines can help solving the problem," he said.
Al-e Es'haq also blamed the current situation on the Central Bank's statements regarding issuance of letters of credit (LC) and the LCs issued by bankrupted manufacturers.
He also requested the next administration to provide a new plan to organize the above-mentioned issues.
According to the Central Bank of Iran's reports, the government's debts to CBI from the beginning of Mahmoud Ahmadinejad's government until spring of 2011 increased by 324 percent.
Iran's government and judiciary had many conflicts regarding the bank debtors' cases in the past few years, but so far the debts have not been paid off.
Iran's Credit and Cash Council member Kourosh Parvizian told the ISNA News Agency earlier this month that some of the loans were paid off and currently the figure of unpaid debts to Iranian banks stands at 500 trillion rials (some $15.15 billion based on the price of USD at the free market).