Economy, Business And Markets

CBI Capital Increase

CBI Capital IncreaseCBI Capital Increase

First Vice President Es’hagh Jahangiri on Saturday notified the Central Bank of Iran of a government ruling to raise its capital, Boursepress reported.

Based on the decision, the central bank’s capital will be increased by 6.4 trillion rials ($186.9 million), reaching 43.4 trillion rials ($1.26 billion) from a previous 37 trillion rials ($1.08 billion) from the bank’s contingency reserves.

On Feb. 15, the cabinet agreed to raise additional capital for the CBI after Valiollah Seif, the governer of the central bank, informed President Hassan Rouhani of the need during the bank’s general meeting in mid-December.

To improve the state of the CBI and help stabilize the banking system, Seif asked for the capital raise, the debt of the government and state-owned companies to the CBI be paid, and the ceiling for compulsory lending – loans the government forces banks to pay for profligate projects  – be decreased.