Iran’s banking system pays loans worth $66B in 7 months

Business Materials 30 November 2014 16:44 (UTC +04:00)

Baku, Azerbaijan, Nov. 30

By Umid Niayesh - Trend:

The Iranian banking system has paid 1,770 trillion rials (about $65.94 billion based on official rate of 26,847 rilas per each USD) in loans during the first seven months of the current fiscal year (March 21- Oct. 22), Ali Asghar Mir Mohammad Sadeghi, general manager for credit affairs of Iran's Central Bank said.

He added that about 550 trillion rials ($20.48 billion) of the loans were paid to the industry sector, Iran's Fars news agency reported Nov. 30.

Mir Mohammad Sadeghi said that about 2,800 trillion rials of loans is planed to paid by the country's banking system during current fiscal year (to be ended on March 21, 2015), adding the figure is materialized by 63 percent so far.

The official added that the amount of loans during the seventh Iranian calendar month (Sept. 21-Oct. 22) has increased by 20 percent compared to the preceding month.

Along with industry and mining sectors, the highest amounts of loan have been paid to agriculture, housing, commerce, and service sectors.

Iran has been struggling with bad loans in the past few years.

Iran's private sector debt to banking system has reached 5,410 trillion rials( about $201 billion).

The Iranian government also owes over $28 billion to the national banking system.

Iran's economy minister Ali Tayyebnia said on Aug. 19 that the administration will set up a special legal commission to deal with bank loan defaulters.

Tayyebnia said on June 18 that the real value of the Iranian banking system's bad loans is $47 billion.