Economy, Business And Markets

40% Increase in Banking Loans

40% Increase in Banking Loans40% Increase in Banking Loans

Commercial banks provided Iranian customers with 1,463 trillion rials ($45.7 billion) in loans in the first half of the year (ending September 22). The value of loans shows as much as 40 percent increase compared to the same period last year, the central bank reported on Monday. According to the report, 466 trillion rials of the total sum went to the mining and industry sector, accounting for 31.8 percent of the granted loans. The figure shows an increase of 50.3 percent. The loans offered by banks were mainly used by companies to shore up their cash flow. Up to 882 trillion rials in loans, the report said, were spent to address cash flow problems. The figure accounts for 60.2 percent of the total loans provided, indicating a 48.5 percent growth compared to the first half for last year. The Rouhani administration has been urging big companies to raise funds, if need be, through the capital market rather than the banking system, which in recent years has been dealing with serious financial challenges.