Iran's Planning and Budget Organization does not get loans from banks - official

Iran Materials 24 June 2019 15:26 (UTC +04:00)

Tehran, Iran, June 24


Deputy head of Iran's Planning and Budget Organization has announced that the organization did not receive any loan from Central Bank of Iran (CBI) or any other public or private banks during last Iranian year (March 21, 2018 - March 20, 2019).

"Despite the difficult year, we did not get any loan from banks and did not increase the monetary base in last Iranian year. The tendency is expected to continue in the current Iranian year [started March 21, 2019]," said Hamid Pourmohammadi, Trend reports citing Fars News Agency.

Statistics over amount of government debt to banks in current year have not been released so far. The latest statistics of the Central Bank of Iran show, that the government debt reached $16 billion in November 2018, thus increasing by 12 percent compared to the same period in 2017. The government share amounted to $10 billion, while the rest was loaned to the state organizations and companies.

In recent years, the government debt to banks has increased and is growing despite the plans to arrange the debt payment.

Some experts believe that the government is the biggest debtor in the country and the rise of debts has caused banks to limits loans. Economists think the main reason for the government attempt to get the loan is to compensate $10 billion budget deficit.