Economy, Business And Markets

Banks Acquire Stressed Industries

Banks Acquire Stressed IndustriesBanks Acquire Stressed Industries

Banks have taken over 1,099 struggling industrial units across the country, while 75% of them are still active, said deputy minister of industries, mining and trade on Sunday.  

“Bank Melli Iran accounts for the largest number of takeovers,” IRNA quoted Ali Yazdani as saying.

The government had announced earlier that the ownership of inactive industrial companies that was transferred to banks will be retrieved, since banks are not allowed to expropriate industrial units put up as collateral against debt.

The prolonged economic recession has crippled and disabled industries from meeting their financial commitments to banks and other lending institutions.

Yazadani added that a total of 87,569 industrial units had obtained license by the end of the previous fiscal year, 91% (79,838) of which are small-scale industries.

Of this number 37,000 units are based in industrial parks across the country.