Economy, Business And Markets

Major Banking Debtors

Major Banking DebtorsMajor Banking Debtors

In the month to April 20, the Central Bank of Iran and development funds provided 18 banks and privately-owned credit and financial institutions with 193 quadrillion rials ($6.6 billion at official exchange rate) in loan.

However, the banks’ total debt reached 203 quadrillion rials ($7 billion) before March 20, Akhbar Bank news website reported on Sunday.

Statistics show that among the private lenders, Ayandeh Bank, Sarmayeh Bank and Bank Day owe the most substantial debts to the central bank, while Sina and Saman banks have successfully managed to clear their debts.

The chart shows the names of nine major banking debtors, comparing their debt burden for two months in a row.

Ayandeh Bank stands at first place among debtors but it managed to decrease the debt by 22% within a month. However, Sarmayeh Bank has failed to do so. Despite taking massive loans, Bank Day is exempt from paying 34% interest to the central bank since it mostly borrowed from other banks and domestic financial institutions.

The above figures show that several private lenders’ debt to the regulator exceeds their whole capital. That could endanger banks’ operations in future.

Nine other commercial banks which were excluded from the table hold 1-2 quadrillion rials ($34-68 million) in debt to the CBI and development funds.