Mohammad Reza Mortazavi
Mohammad Reza Mortazavi

Rules Easing Bank Debtors’ Travel Welcome

Rules Easing Bank Debtors’ Travel Welcome

A member of Tehran Chamber of Commerce, Industries, Mines and Agriculture has welcomed the rules easing travel for bank debtors, noting that executive bodies should understand the fact that the economy experienced a challenging period that damaged small business owners.
“Problems facing manufacturers were beyond their power so they were not able to fulfill part of their commitments,” Mohammad Reza Mortazavi was also quoted as saying by Banker.ir.
He believes that there is no manufacturer who would abscond for a figure like 2 billion rials ($50,000) and these kinds of regulations only lead to “distraction and chaos in the market”.
“In my opinion, the new minimum debt ceiling could be even raised higher,” he added.
The Central Bank of Iran issued a new directive on Monday, increasing the minimum amount of debt required for banks to call for a foreign travel ban on individuals and legal entities.
According to the new directive, natural persons with debts exceeding 3 billion rials ($78,000) and legal entities who have racked up debts higher than 5 billion rials ($130,000) and also do not possess a valid guarantee, namely immovable property like real-estate or movable property like bank deposits or other acceptable collaterals, could be placed on the no-fly list if demanded by the banks’ CEOs.
The former version of this directive approved on September 24, 2013, considered all individuals and legal entities, whose debts exceed 2 billion rials ($50,000), eligible for a no-fly listing.
The new directive also makes a distinction between natural persons and legal entities in setting the debt limits.
Experts believe this increase reflects the fact that 2 billion rials ($50,000) is no longer a considerable amount of money and the average debt of bank debtors has increased dramatically since 2013. 

Short URL : https://goo.gl/BKLfQB
  1. https://goo.gl/aFliyc
  • https://goo.gl/NxOGjx
  • https://goo.gl/TKrihf
  • https://goo.gl/lQmtiw
  • https://goo.gl/3LHVVn

You can also read ...

Italy's Ansaldo Set to Produce Power From Iran's South Pars Gas Flares
Italy's Ansaldo Energia signed a memorandum of understanding...
Fate of Cryptocurrency in Iran Hangs in Balance
Virtual currencies are slowly but steadily gaining traction...
IRISL Returns to the Fold of Int’l Shipping Giants
The Islamic Republic of Iran Shipping Lines plans to replace...
Dairy Exports to Hit $1b
Iran is one of the top milk producers and has ambitious plans...
1st Currency ETF  in the Pipeline
The Iranian capital market’s first foreign currency exchange-...
Money and Credit Council Approves Liquidity Risk Management Rules
Money and Credit Council, a top financial decision-making body...
84% Rise in Rice Imports
More than 1.05 million tons of semi and wholly milled rice...
Iran Insurance Growth at 20%
The collective figure of Iranian insurance companies’ premiums...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.