New Lending Policy Will Harm, Not Help

The new orders given to state banks to give microloans to salaried employees without demanding collateral will add to the myriad of problems of the lenders, a banking expert said.
Bahaedin Hosseini-Hashemi questioned the government move as “a mandatory policy that will add to the problems of banks”. 
“Opposing the policy, Hosseini-Hashemi noted that banks simply don’t have unlimited resources to be able to lend without collateral. Such a move will lead to a tsunami of loan applicants,” he told the Tehran Chamber of Commerce, Industries, Mines and Agriculture website.