Iran gov't debt to banking system increases by 26%

Business Materials 10 July 2017 13:14

Baku, Azerbaijan, July 10

By Fatih Karimov– Trend:

Iranian government's debt (including state-run companies) to the banking system has reached 2,197.5 trillion rials (each 32,000 rials making one USD) by the end of the last fiscal year (March 20, 2017).

The figure, which includes debts of the government and state-run companies to the Central Bank of Iran (CBI) as well, is 26.4 percent more than of the same period last year, the CBI said July 10.

The figure was 1,738.6 trillion rials and 1,466 trillion rials in the preceding fiscal years (March 2016 and March 2015 respectively).

Meanwhile the debts of the private sector to the country’s banking system accounted to 9,177.2 trillion rials by March 20, indicating a rise by 24.7 percent compared to the preceding 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 Iranian banking system’s net foreign assets reached 2,512.6 trillion rials by March 20, 2017. The figure is 2 percent more compared to 2,464.3 trillion rials of assets preceding year.

Net foreign assets of CBI accounted for 1,924.6 trillion rials by March 20, 2017.