Iran government debt to banking system up by 28%
Baku, Azerbaijan, Nov. 13
By Fatih Karimov – Trend
Iranian government's debt (including state-run companies) to the banking system has reached 1405.5 trillion rials (each 31,965 rials making one USD) by Sept. 21.
The figure doesn’t include debts of government and state-run companies to the Central Bank of Iran (CBI).
The figure was 1100.6 trillion rials last year (Sept. 21, 2015), registering a 27.7 percent increase year on year, the CBI said Nov. 13.
The debt has increased by 15.4 percent in comparison with the end of the last fiscal year (March 20, 2016) which had the figure at 1218.3 trillion rials.
The government debt to the banking system witnessed a rise by 27.7 percent by Sept. 21, while compared to the Sept. 21, 2015 and stood at 1367.6 trillion rials.
Meanwhile the debts of Iranian state-run companies to the banking system stood at 37.9 trillion rials by Sept. 21, 28.9 percent more year on year.
The figure has increased by 40.4 percent in comparison with the end of the last fiscal year (March 20, 2016).
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 942.2 trillion rials by Sept. 21, 16.9 percent more year on year.