Iran’s banking system owes $30B to Central Bank

Business Materials 22 May 2015 12:45 (UTC +04:00)

Baku, Azerbaijan, May 22

By Fatih Karimov - Trend: Iranian banks owe a total of $30 billion to the Central Bank of Iran.

According to the Central Bank statistics, the total debt of the banking system to the Central Bank reached 840 trillion rials (about $30 billion based on US dollar official exchange rate), by the end of the eleventh Iranian fiscal month of Bahman last year (Feb. 19, 2015), Iran's Fars news agency reported May 22.

The volume of debt shows a 42.7 percent rise compared to Iranian fiscal year 1392 (March 2013-March 2014).

The report added that the foreign assets of the Iranian banks dropped by 4 percent and stood at $68 billion.

Total deposits at Iranian banks rose by 7.6 percent and reached $28 billion.

The Central Bank has formed a committee to investigate how lenders accumulated the equivalent of $32.4 billion in bad loans.

Iranian Economy Minister Ali Tayebnia said in March that some of the loans were extended to "debtors with a bad record, clients who weren't credit worthy some years ago and received loans at cheap rates and have no willingness to pay them back".

Banks of Melli, Parsian, and Tejarat have the highest amount of bad loans in Iran.

Edited by CN