Iran unveils details on loans paid to various sectors

Business Materials 17 January 2018 16:27 (UTC +04:00)

Baku, Azerbaijan, Jan. 17‎

By Fatih Karimov – Trend:

The Iranian banking system paid ‎4,036.6 ‎trillion rials (some $110 billion based on official exchange rate of $1 to 36,550 rials) in loans during the first nine months of the current fiscal year (started March 20, 2017).

The figure indicates a rise by 5.5 percent compared to the same period of the preceding year, the Central Bank of Iran (CBI) said Jan. 17.

Over 462.3 trillion rials were paid in loans to various sectors in the ninth Iranian calendar month of Azar (Nov. 21-Dec. 21, 2017).

A huge share of the paid loans was for supplying the working capital of various sectors. The working capital shared 62.3 percent or 2,515 trillion rials of the paid loans in the 9-month period.

Only 9.4 percent of the loans by banks were allocated to establish new units (379.85 trillion rials), while 4.6 percent of the assets were for development, and 2.7 percent were for repairs.

The highest value of the paid loans went to service sector (39.8 percent), followed by industry and mining sectors (29.3 percent), commerce (14 percent), housing (8.8 percent) and agriculture (8 percent).

The country’s banks paid 1,607.1 trillion rials to the service sector during the 9-month period.

Over 1,180.31 trillion rials of loans were paid to industry and mining sectors, 563.5 trillion - to commerce sector, 355.33 trillion rials - to housing sector, and 324.22 trillion rials - to agriculture sector.

Iran’s banking system paid ‎5,483.7‎ trillion rials in loans to various sectors during the last fiscal year (March 20, 2016 to March 19, 2017), 31.4 percent more than in the preceding year.

Iran has been struggling with bad loans over the past several years.