Government debts to Iran’s banking system continue to grow
Baku, Azerbaijan, Sept. 11
The latest data released by Central Bank of Iran (CBI) indicates that the Iranian government’s debt to the country’s banking system on July 22 has registered a rise by 24.5 percent year-on-year, meanwhile the figure jumped by 9.6 percent from the beginning of the current fiscal year, started March 20, 2018.
According to the CBI report, the debts of Iranian government and state-run companies to the country’s banking system reached 2,836.3 trillion rials (Each USD makes 42,000 rials at the time) by July 22.
The figure, which includes debts of the government and state-run companies to the Central Bank of Iran (CBI) as well, is 22.4 percent more than in the same period of last year.
Debt has increased by 9.7 percent in comparison with the beginning of the last fiscal year (March 20, 2018) which had the figure at 2,586 trillion rials.
That figure was 2,198 trillion rials, 1,739 trillion rials and 1,683 trillion rials in the preceding fiscal years (March 2017, March 2016 and March 2015 respectively).
Government's debt to the banking system stood at 2,513 trillion rials. Meanwhile, debts of the Iranian state-run companies to the banking system stood at 323 trillion rials by July 22, 8.1 percent more, year on year. The figure (debt of state-run companies) has increased by 10.6 percent in comparison with the beginning of the current fiscal year (March 20, 2018).
Meantime, debts of the non-governmental sector to the country’s banking system accounted to 11,272 trillion rials by July 22, indicating a rise of 17.6 percent compared to the preceding year.
The CBI report also indicates that debts of Iranian banks to the Central Bank have reached 1,471 trillion rials, 36.4 percent more compared to July 22, 2017.
It should be noted that Iran's banking system has been struggling with bad loans in the past few years. Banks of Melli, Parsian, and Tejarat had the highest amount of bad loans in Iran.