What will Iranian banks with surplus property face?
Iran set a three-year deadline in its budget plan for the last year (March 21, 2017) for banks to deal with their surplus properties, however, they have only managed to decide over 35 percent of their properties and 65 percent are still waiting for their fate.
The former CEO of Bank Saderat Seyed Bahaeddin Hosseini Hashemi discussed the issue in an interview with Trend.
"It is not an easy task to sell banks properties, specially during recession and low trade in the market,” he said.
He noted that currently, the prices are high and banks do not have the ability to offer loan and there is investment downturn in the field of assets. So, buying bank property is not profitable and also many of these properties have problems in their documents, added Hosseini.
“Unfortunately, people do not have the tendency to buy confiscated or state-owned properties and hesitate to purchase them. But some of the banks do not sell their properties and use them."
Referring to the banks’ delayed debts, he said it is true that the process of loan payment is being executed carelessly.
He talked about the repayment of the banks' debts which are rooted to the debts of people in form of loans to the banks(the cycle of debts).
Now, the amount of loans is dependent on the value of the property guarantees.
Determining the value of property is the task of bank evaluators, which some times evaluate a property with higher value than its real worth to get higher bank loan, he added.