Business And Markets

62 State Companies in a Sea of Red Ink

62 State Companies  in a Sea of Red Ink
62 State Companies  in a Sea of Red Ink

More than 60 companies affiliated to the government are on the verge of bankruptcy, the deputy economy minister for banking, insurance and state-run companies said.
“There are 451 state companies of which 354 are operating, 62 are in the liquidation process and 35 are inactive”, Abbas Hosseini told reporters on Tuesday.
Hosseini said that the lossmaking firms are subject to Article 141 of Trade Law, which says companies must start liquidation process if their accumulated losses exceed 50% of their capital, IBENA reported. 
The Planning and Budget Organization has allocated 21,120 trillion rials ($70 billion) in the 2022-23 budget to government-controlled companies and state banks. 
This is 34.4% higher from the 15,710 trillion rials ($52b) in the previous budget. State-run companies gobble up 60% of the government budget (running a huge deficit) for this year. 


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