Iran government debt to banking system up by 23%

Business Materials 5 September 2016 12:18 (UTC +04:00)

Baku, Azerbaijan, Sept. 5

By Fatih Karimov – Trend:

Iranian government's debt (including state-run companies) to the banking system has reached 1315.8 trillion rials (each 31,268 rials making one USD) by June 20.

The figure doesn’t include debts of government and state-run companies to the Central Bank of Iran (CBI).

The figure was 1066.2 trillion rials last year, registering a 23.4 percent increase year on year, the CBI said.

The debt has increased by eight percent in comparison with the end of the last fiscal year (March 20) which had the figure at 1218.3 trillion rials.

The government debt to the banking system witnessed a rise by 24.8 percent by June 20, while compared to the June 20, 2015 and stood at 1284.7 trillion rials.

Meanwhile the debts of Iranian state-run companies to the banking system stood at 31.1 trillion rials by June 20, 14.6 percent less year on year.

Iran's banking system has been struggling with bad loans in the past few years. Banks of Melli, Parsian, and Tejarat have the highest amount of bad loans in Iran.

The CBI report also indicates that the debts of Iranian banks and credit institutions to the central bank reached 895.1 trillion rials by June 20, 10 percent more year on year.