New Loans Higher Than Expected
Economy, Business And Markets

New Loans Higher Than Expected

The new loans provided by commercial banks in the 11 months to February 19 exceeded 2.91 quadrillion rials ($104 billion at official exchange rate), new data shows.
Compared to the same period a year earlier, the figure increased by 760 billion rials ($27 million), ISNA reported, citing the official data. The amount has surpassed the predicted 2.85 quadrillion rials ($101.8 billion) Valiollah Seif, governor of the Central Bank of Iran, had earlier projected.   

The hike in new loans however has raised concerns among several officials. Akbar Komijani, CBI’s deputy governor, warned earlier that the growing amounts of loans are at odds with CBI’s main priority, which is, curbing inflation, “especially in the light of the fact that several lenders have already borrowed much from the CBI.”    
CBI statistics indicate that out of the total loans provided, 60.3 percent was given to help shore up cash flow of businesses in a depressed market. The figure increased by 54 percent compared to the same period a year earlier.
Nearly 30.9 percent of the loans went to the industries and mining sector only, indicating a 39.7 percent growth. Out of the loans provided to this sector, 81 percent was granted to address cash flow problems.
Komijani said it’s a good sign that most of the loans were used to support businesses but warned that such huge liquidity could jeopardize CBI’s efforts to reduce inflation further. The inflation rate has dropped from once 40 percent to around 16 percent now.
He has predicted that the new loans will amount to at least 3.2 quadrillion rials ($115.7 billion) in the 12 months to March 20.


Short URL : http://goo.gl/2TijPi

You can also read ...

Currency, Gold at New High in Tehran Market
The foreign exchange market heated up again on Monday to post...
Gov’t to Issue Bonds to Pay Back Loans on Iran Air ATR Planes
The government’s Economic Council last week approved a...
Iran: Summer Sees Highest Inflation on Record
The consumer price index increased from 116.2 to 134.6 or...
Iranian Ministry of Industries, Mining and Trade has released...
Iranian Private Carmaker Increases Prices 55%
Iran’s largest private automaker Modiran Vehicle Manufacturing...
Tehran Stocks Rally, Incline Toward Export Sector
Tehran Stock Exchange set a fresh record high on Monday as...
Iran Steel Exports Rise  27% to Over 4m Tons: ISPA (Mar-Aug, 2018)
A total of 4.13 million tons of finished and semi-finished...
Iranian Banks Lend $16.8 Billion in 5 Months
Banks and credit institutions allocated 2.4 quadrillion rials...