Iranian first vice president: Iran’s bad loans amount to $28 billion

Business Materials 22 October 2013 16:20 (UTC +04:00)

Azerbaijan, Baku, Oct.22/ Trend F.Karimov/

Bad loans belonging to the Iranian banking system amount to 700 trillion rials which is about $28 billion based on the US dollar exchange rate of 24,900 rials, the Mehr News Agency quoted Iranian first vice president Es'haq Jahangiri as saying.

More than 110 trillion rials of the loans have been received by 23 people, the majority of them not undertaking production activities, he added.

The administration is resolved and committed to following up the case and returning the sum to the banking system, he stressed.

In July, the debt of Iranian banks to the Central Bank reached 370 trillion rials, some $30 billion in the first quarter of the past calendar year, the ISNA News Agency reported.

The Iranian calendar year ends on March 20.

Debts of commercial and specialised banks amounted to 136 trillion rials and 239 trillion rials, respectively.

The total debts of banks to the Central Bank hit 168 trillion rials, 231 trillion rials and 135 trillion rials respectively three to five years ago.

Central Bank Governor Mahmoud Bahmani said the banking system has around 500 trillion rials, some $40.7 billion in bad loans.

Outstanding debts in Iran amounts to 100.5 trillion rials which is about $4 billion based on the USD official exchange rate of 24,900 rials, IRNA quoted Iran's Tax Affairs Organization director Ali Askari as saying.

Half the sum is the original amount of the debts and the rest is the fine accrued to the original sum, he added.

The Central Bank of Iran has disallowed those who owe over two trillion rials about $80,000, to the national banking system to leave the country, ISNA reported.

The case covers those debtors who cannot provide collateral including removable or irremovable properties.

Iran's private and state sector debts to the country's banks reached $196.4 billion based on the official rate of 24,900 rials per each USD on June 21 which indicates an increase of 19.3 per cent compared to same date last year, Iranian Jahanesanat newspaper reported.

According to the report, the figure was $186 billion at the end of last solar year ended March 21.