Economy, Business And Markets

Gov’t Ratchets Up Pressure on Uncertified Institutions

Gov’t Ratchets Up Pressure on Uncertified InstitutionsGov’t Ratchets Up Pressure on Uncertified Institutions

First Vice President Es’haq Jahangiri said on Monday all sections of the ruling system, including the government, judiciary and the Supreme National Security Council, are unanimously determined to confront uncertified credit and financial institutions.

In an address to the Headquarters for Fighting Economic Corruption, Jahangiri said illegal credit companies, which are a new phenomenon in the country, not only flout monetary rules of the country, but also commit several other violations.

Acknowledging that many unsuspecting citizens have deposited in uncertified financial institutions, Jahangiri emphasized the need to organize them in the “proper” manner.

“Confronting and ordering these companies should be done in a way so the rights of citizens won’t be infringed upon,” he said.

Emphasizing the need for unity among the governing sectors for acting against unlicensed institutions, Jahangiri called for the establishment of a working group comprised of all relevant bodies to come up with a comprehensive plan for organizing these institutions.  

Dealing with uncertified financial institutions like Mizan, whose number exceeds 6,000, has been a major challenge for the current administration since the rapid growth of such companies during the tenure of the previous government has made some of them too big to fail.

They have been thumbing their nose at the regulations of the Central Bank of Iran, attracting large number of unsuspecting customers by offering unusually high deposit rates.