Iran's total foreign debt declined from $20 billion in 2011 to $5 billion in 2014, the deputy economy minister for banking, insurance and state-owned companies, Hussein Qazavi said.
“The country has been repaying its foreign debts. Short-term debts amounted to $500 million during the first half of the year ending Sep. 22 down from $10 billion in 2011," he was quoted as saying by ISNA on Tuesday
Iran is capable of attracting $32billion-$42 billion in financing each year, and repay at least $8-10 billion per annum without adding extra burden on the economy, he said.
Financial brokerage is necessary for promoting sustainable development, he said. “However, such methods would help if and when they manage to provide funds to businesses when they need it.”
He also underscored the need for modern financial tools, in line with technological innovation, to help revive the economy and create the much-needed "business-friendly atmosphere."
Restrictions for attracting foreign financial resources in recent years are the main obstacles to growth, he added.
Banking Reform
Qazavi called for enhancing banks’ financial ratios and said it would give the Central Bank of Iran and the Ministry of Economy more leverage to encourage foreign banks and insurance companies to reenter the Iranian markets in the aftermath of the international sanctions.
“Banks should also need to improve their capital adequacy through shareholders' funds,” he said, noting that banks can and should also improve other indexes.
