Councilor Blasts Banks’ Role in Big Constructions
Economy, Business And Markets

Councilor Blasts Banks’ Role in Big Constructions

Head of the Environment Committee of Tehran City Council has criticized banks’ increased investment in major building projects in the sprawling capital and warned against environmental degradation due to the increasing illegal constructions in urban areas.
“Tehran environment has fallen victim to the illegal investment of banks,” Muhammad Haghani said, news outlets reported at the weekend.
Banks should contribute to economic development and growth and the “lucrative construction sector is one easy domain” for lenders to make profit because of the low risks and high gain, which in indeed is “contrary to their (banks) legal commitments, the councilor said.
Major banks and lending institutions have in recent years shifted attention to real estate and construction of towers and malls in the form of employers, contractors or shareholders.
The massive constructions are seen as controversial cases of large financial institutions pumping money into big construction projects that have led to complaints from the city council.
Haghani added that the vast volume of building projects financed by banks and their ownership over a considerable amount of immovable property raise on key question. “Are the banks legally permitted to own property and build vast commercial and housing complexes in metropolitan areas?”
The councilor noted that despite legal limitations “banks resort to the people’s deposits to erect buildings in every alley and street in Tehran.”  He added that relevant bodies such as the Law Enforcement Forces, Judiciary and Majlis should collaborate to address the problem by preventing banks and financial institutions from real estate and construction activities as well as revising relevant rules and regulations of the Central Bank of Iran.

Short URL : https://goo.gl/Kysq0u
  1. https://goo.gl/j4tH14
  • https://goo.gl/NAtqwN
  • https://goo.gl/2ay7no
  • https://goo.gl/ku7kYX
  • https://goo.gl/o7n1VO

You can also read ...

How China Became Iran’s Coziest Trade Partner?
From bilateral trade to finance contracts and civil projects,...
The economy of the Islamic Republic of Iran has been tied to political and foreign affairs developments over the years.
This is the Financial Tribune’s last edition of the current...
Iranian Banking Sector Awaits Full JCPOA Benefits
Iran’s Deputy Foreign Minister Abbas Araqchi addressed various...
President Hassan Rouhani on Sunday spoke to reporters after the last Cabinet meeting of the current year.
President Hassan Rouhani on Sunday outlined his administration...
Iran has more than 37 billion tons of proven mineral reserves and 57 billion tons of potential reserves.
Iran exported more than 58.09 million tons of mineral products...
All-Out Growth in Interbank Market
The Central Bank of Iran has released its latest data on the...