Iran banking system’s loans increase by 43%

Business Materials 23 January 2017 10:40 (UTC +04:00)

Baku, Azerbaijan, Jan. 23

By Fatih Karimov – Trend:

The Iranian banking system paid 3,824.5 trillion rials ($118.2 billion based on official exchange rate of $1=32,360 rials) in loans in the 9-month period from March 20, 2016, the Central Bank of Iran (CBI) said.

The figure indicates a rise by 43.5 percent compared to the first nine months of the last Iranian fiscal year (March 20-Dec. 21, 2015).

Over $16.3 billion in loans were paid to the various sectors in ninth Iranian calendar month of Azar (Nov. 21-Dec. 21, 2016).

The country’s banks paid 1,525.46 trillion rials to the service sector during the 9-month period.

Along with service sector, the highest amounts of loan have been paid to industry and mining (1,107.6 trillion rials), commerce (539.183 trillion rials), housing (342.9 trillion rials) and agriculture (306.55 trillion rials) sectors.

According to IMF, Iran’s GDP growth for the current fiscal year, which started on March 21,2016 is expected to reach 4.5 percent, however the economic growth will decrease in 2017 to 4.1 percent. The figure is expected to hit 4.3 percent in 2021.

The CBI says that the country’s GDP growth reached 7.4 percent during the first half of current fiscal year.
Iran has been struggling with bad loans over the past few years.