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Iran gov't debts to banking system continue to pile up

Business Materials 12 March 2018 12:09 (UTC +04:00)

Baku, Azerbaijan, March 12

By Gazenfer Hamidov – Trend:

Iranian government’s debt to the country’s banking system was on the rise in recent years.

According to the latest data released by Central Bank of Iran (CBI) the debts of the Iranian government and state-run companies to the country’s banking system has reached 2,556.9 trillion rials (each 37,500 rials making one USD) by Jan. 20.

The figure, which includes debts of the government and state-run companies to the Central Bank of Iran (CBI) as well, is 22.5 percent more than in the same period of last year.

Debt has increased by 16.4 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 1,683.4 trillion rials in the preceding fiscal years (March 2016 and March 2015 respectively).

Government's debt to the banking system witnessed a rise of 26.7 percent by Jan. 20, while compared to Jan. 20, 2017 and stood at 2,271 trillion rials.

Meanwhile, debts of the Iranian state-run companies to the banking system stood at 285.9 trillion rials by Jan. 20, 3.1 percent less, year on year. The figure has decreased by 15.8 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 10,277.8 trillion rials by Jan. 21, indicating a rise of 17 percent compared to the preceding year.

The CBI report also indicates that debts of Iranian banks to the Central Bank have reached 1,174.8 trillion rials by Jan. 20, 7.6 percent more, year on 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.

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