55% of Iran’s banking resources locked

Business Materials 6 October 2015 18:14 (UTC +04:00)

Tehran, Iran, Oct. 6

By Mehdi Sepahvand -- Trend:

Fifty-five percent of Iran's banking resources are locked, Secretary of Iran's Supreme Council on Free Zones Akbar Torkan said.

The official noted the fact is due to paying facilities, adding that the improvement of GDP needs heavy investment which the country's banking system is unable to fulfill, Fars news agency reported October 6.

One of the major hurdles against investment are the banks, he pointed out.

"There are big debtors to the banking system. The facilities given by banks have not been spent in target projects but spent somewhere else. This is a case banks have to pursue," he urged.

Big outstanding debts are a major financial problem in Iran. Last year the outstanding debts of the Iranian banks amounted to 820 trillion rials (over $28 billion).

Deputy Judiciary Chief Qolamhossein Mohseni Ejei has said that the number of big time debtors in Iran has lowered from 575 to 217.

He said in June that 40 trillion rials ($1.4 billion) had been received through the Registration of Deeds and Properties Organization by then.

Edited by CN