Brief review of loans by Iranian banks to various sectors

Baku, Azerbaijan, Feb. 21‎

By Gazenfer Hamidov – Trend:

The Iranian banking system paid ‎some 4,620 ‎trillion rials (some $124 billion based on official exchange rate of $1 to 37,200 rials) in loans during the first 10 months of the current fiscal year (started March 20, 2017).

The figure indicates a rise by 8 percent compared to the same period of the preceding year, the Central Bank of Iran (CBI) said Feb. 21.

Over 586.4 trillion rials were paid in loans to various sectors in the tenth Iranian calendar month of Day (Dec. 21, 2017-Jan. 20).

A huge share of the paid loans was for supplying the working capital of various sectors. The working capital shared 62.2 percent or 2.87 trillion rials of the paid loans in the 10-month period. Allocated loans for working capital registered a rise by 5.5 percent compared to the first 10 months of the last fiscal year.

The Industry and mining sector received lion share of paid loans for supplying the working capital. Over 39.5 percent of the loans in this field was allocated to the Industry and mining sector (1.13 trillion rials).

Only 9.6 percent of the loans by banks were allocated to establish new units (442.58 trillion rials), while 4.7 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 (40 percent), followed by industry and mining sectors (29 percent), commerce (14 percent), housing (9 percent) and agriculture (8 percent).

The country’s banks paid 1.85 trillion rials to the service sector during the 10-month period.

Over 1.34 trillion rials of loans were paid to industry and mining sectors, 645.4 trillion - to commerce sector, 396.13 trillion rials - to housing sector, and 379.06 trillion rials - to agriculture sector.

Iran’s banking system paid ‎5.48\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.

The details of the paid loans to various sectors (figures are in billion rials)