Iranian banks on verge of bankruptcy

Business Materials 7 June 2016 17:38 (UTC +04:00)

Baku, Azerbaijan, June 7

By Khalid Kazimov - Trend:

A research center in Iran has released a report suggesting that most of the banks in the country are on the verge of bankruptcy.

The Islamic Parliament Research Centre, after considering the state of the balance sheets, liquidity and banking regulatory in Iran, announced that most of the Iranian banks are in a poor situation, Fars news agency reported June 7.

The report further suggested that borrowing from the Central Bank has, so far, saved Iranian banks from going bankrupt.

During his mid-May visit to Iran, First Deputy Managing Director of the International Monetary Fund (IMF) David Lipton called for restructuring the country's banking system - both at its operational level and its high level of nonperforming loans - to help lower real interest rates and stimulate credit to the economy.