Iran gov't debt to country’s banking system up by 18%

Business Materials 17 September 2017 15:56 (UTC +04:00)

Baku, Azerbaijan, Sept. 17

By Fatih Karimov– Trend:

Iranian government's debt (including state-run companies) to the banking system has reached 2,316.8 trillion rials (each 33,450 rials making one USD) by July 21.

The figure, which includes debts of the government and state-run companies to the Central Bank of Iran (CBI) as well, is 17.9 percent more than of the same period last year, CBI reported.

Debt has increased by 5.4 percent in comparison with the end of the last fiscal year (March 20, 2017) which had the figure at 2,197.5 trillion rials.

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

Government's debt to the banking system witnessed a rise of 22.3 percent by July 21, while compared to the July 21, 2016 and stood at 2018 trillion rials.

Meanwhile, debts of the Iranian state-run companies to the banking system stood at 298.8 trillion rials by July 21, 5.2 percent less, year on year. The figure has decreased by 12 percent in comparison with the end of the last fiscal year (March 20, 2017).

Meantime, debts of the non-governmental sector to the country’s banking system accounted to 9,585.7 trillion rials by July 21, indicating a rise of 22.2 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 debts of Iranian banks and credit institutions to the Central Bank have reached 1,078.7 trillion rials by July 21, 18.7 percent more, year on year.