Reducing NPLs

The government has managed to lower the amount of non-performing loans of banks from 15% three years ago to 11%t, says Valiollah Seif, the governor of the Central Bank of Iran. The volume is expected to be reduced further to less than 5% within the next fiscal year. The government is firm in implementing reforms in the banking sector, he was quoted as saying in a meeting with officials in Yazd province ebinews.com reported. The high and rising stressed assets in recent years have disrupted the normal functioning of lenders and other financial intuitions. Referring to two bills proposed by the government to overhaul the banking industry and the central bank, the senior banker said he is optimistic about the reforms’ impact on the economy. “It will promote the role of the CBI in the economy.”