Brief review of loans by Iranian banks to various sectors

Baku, Azerbaijan, April 28

By Umid Niayesh – Trend:

The Iranian banking system paid ‎some 6,139 ‎trillion rials (some $146 billion based on official exchange rate of $1 to 42,000 rials) in loans during the last fiscal year (ended March 20).

The figure indicates a rise by 12 percent compared to the preceding year, the Central Bank of Iran (CBI) said.

Over 945 trillion rials were paid in loans to various sectors in the 12th Iranian calendar month of Esfand (Feb. 20-March 20).

A huge share of the paid loans was for supply of the working capital of various sectors. The working capital shared 62 percent or 3,789 trillion rials of the paid loans in the 12-month period. Loans allocated for working capital registered a rise by 8 percent compared to the preceding fiscal year.

The industry and mining sector received a lion's share of paid loans for supplying the working capital. Over 38 percent of the loans in this field was allocated to the industry and mining sector (1,456.8 trillion rials).

Only 10 percent of the loans by banks were allocated to establish new units (609.5 trillion rials), while 5 percent of the assets were for development, and 3 percent were for repairs.

The highest value of the paid loans went to service sector (41 percent), followed by industry and mining sector (28 percent), commerce (14 percent), housing (8 percent) and agriculture (8 percent).

The country’s banks paid 2,528 trillion rials to the service sector during the 12-month period.

Over 1,742 trillion rials of loans were paid to industry and mining sector, 852 trillion rials - to commerce sector, 517 trillion rials - to housing sector, and 493 trillion rials - to agriculture sector.

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

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

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