Economy, Business And Markets

Obfuscation of Distressed Debt Denounced

Obfuscation of Distressed Debt Denounced  Obfuscation of Distressed Debt Denounced

The chairman of the Industries Commission at the Iran Chamber of Commerce, Industries, Mines and Agriculture has demanded that details of banks’ non-performing loans (NPLs) be published.

“I would like to point to the non-performing loans in the banking system which currently amounts to 850 trillion rials ($27.3 billion),” Abolfazl Roghani was quoted as saying by the news website of ICCIMA in a meeting with two deputy ministers of industries, mines and trade.  

“We ask that in the form of a complete and all-encompassing list, all these NPLs be clarified in a transparent manner. This is a rightful demand that must be acknowledged.”

“If we look at the lending power of the banks in their entirety, it shows that it has diminished by 20% and this is another issue that needs clarification.”

Roghani also referred to the schemes devised by the government to stimulate the economy and tackle recession, which he said had not been very successful.

However he spoke positively of the loans that are to be given to small and medium-sized enterprises (SME), calling it a positive move that is compatible with the existing economic climate.

“Although it must be pointed out that after the scheme was introduced, the Central Bank of Iran announced that it does not have the necessary resources to allocate the loans, which shows the lack of coordination between the government and other bodies.”

Valiollah Seif, the CBI governor, has often emphasized plans and policies to support the ailing SMEs by the end of the current fiscal year (March 2017). Furthermore, the head of the Monetary and Banking Research Institute gave more information regarding the critical issue in mid-August. “The Central Bank of Iran, as part of the Banking Overhaul Plan, has considered 16 trillion rials ($ 513.9 million) worth of loans for to SMEs by the yearend.”