Rumors of Banks’ Bankruptcy Rejected

Contrary to recent reports, Iranian banks have not gone bust but are in fact mired in faulty regulations, the secretary-general of the Private Banks and Credit Institutions Association said.”The banks are not bankrupt, but the imposition of obligations and formulation of thorny regulations have harmed the activities of these monetary entities,” Mohammad Reza Jamshidi said in a talk with IRNA. Referring to the portrayal of the banking system as being in crisis by some sections of the media, the official called it “an immoral tool” used by some in light of the fact that the Iranian presidential election on May 19 is approaching. Jamshidi noted that speculations that the banks are on the brink of bankruptcy have resulted from a misunderstanding of the difficult conditions they are in.