20% of liquidity in Iran in hands of unauthorized financial institutes

Business Materials 23 June 2015 12:22 (UTC +04:00)

Baku, Azerbaijan, June 23

By Fatih Karimov - Trend: Twenty percent of liquidity in Iran is in the hands of unauthorized financial institutes, said Akbar Torkan, the senior advisor to Iranian President Hassan Rouhani.

Torkan added that although no financial unit is allowed to operate without obtaining license, but it is unclear why so many institutes are currently operating, Iran 's Mehr news agency reported June 23.

Problems related to the capital market and the banking system cannot be resolved promptly, he said, adding that some one trillion rials (about $30 million based on market exchange rate) of the government's debt to the banking system is related to the issuance of bonds by previous administrations.

He also said that 300 trillion rials (about $9 billion) of the debt are related to housing loans. Meanwhile, 500 trillion rials (about $15 billion) of the banking system's unused assets are related to the Mehr Housing Project, accounting for 55 percent of the banking system's total non-current assets.

Liquidity in Iran hit 7,820 trillion rials (about $237 billion), while it was 670 trillion rials (about $20 billion) ten years ago.

On May 26, Iran 's Mehr news agency quoted Ali Askari, the director of the Iranian Tax Administration as saying that tax evasion in the country amounts to 250 trillion rials (about $7.5 billion) annually.

Edited by CN