80% of bank facilities in Iran going to non-productive section – expert

Business Materials 11 May 2015 20:07 (UTC +04:00)
Iranian economist Abolqasem Hakimipour said that 80 percent of the country’s bank facilities go into non-productive plans.

Tehran, Iran, May 11

By Mehdi Sepahvand - Trend:

Iranian economist Abolqasem Hakimipour said that 80 percent of the country's bank facilities go into non-productive plans.

In order to create a competitive production atmosphere first support must be given to the production sector and then the necessary infrastructure be established, he said, Fars news agency reported May 11.

The economist criticized the Iranian government for lack of a comprehensive economic plan.

He said that for decades, no governmental action has been taken on providing necessary fund for production.

The cooperation between the production and banking systems never came true and remained at the level of words, he said.

He expressed pity that no relation between scholarly centers and executive organizations is established, depriving the country of the chance to adopt well-wrought economic plans.

He deemed it necessary that over $3.5 billion outstanding bank claims be redeemed and fed into the production section.

The government has not done much in producing a lucrative production section, but has on the contrary opened the gates of import, he said.

He went on to note that only 4 percent of goods smuggled into the country are arrested.

There are over 1,000 trillion rials (over $35 billion) outstanding debts without any collateral in the country.

The central bank of Iran in late 2013 disallowed those who owe over 2 trillion rials (about $80,000 based on the dollar/rial ration at that time) to the national banking system to exit the country.

Mehdi Sepahvand is Trend Agency's journalist in Iran, follow him on Twitter: @mehdisepahvand