Iranian steel producer faces mounting burden of debt
Baku, Azerbaijan, Nov. 3
By Khalid Kazimov – Trend:
Esfahan Steel Company, the third largest steel producer in Iran is burdened with massive debts, the company’s head said.
Ahmad Sadeqi, the head of Esfahan Steel Company, has said that the company’s current debts stand at $2billion (66.65 trillion rials according to the official rate on Nov 3), Mehr news agency reported.
The company in average pays over $ 629,500 (20 billion rials) in interest rate to banks per day, he added.
According to the official, the business sustained losses of $377.4 million (12 trillion) over the last Iranian calendar year (ended March 20).
Ahmad Sadeqi further added that the amount of debts that the company owes to banks accounts for $1.187 billion (37.7 trillion rials).
In the meantime, the company owes about $1 billion to other organizations and entities.
Over 13.21 million tons of crude steel were produced in Iran during the first nine months of 2016.
Iran was the world’s 14th biggest producer of steel in the 9-month period. The country also ranked first among the Middle East countries.