In its latest meeting on Wednesday, the Cabinet led by President Hassan Rouhani reviewed a report provided by the Central Bank of Iran on the situation of illegal credit institutions.
In its report, the central bank referred to the formation of Iran Deposit Guarantee Fund as a suitable way of guaranteeing deposits in certified banks and credit institutions in the future.
The IDGF was established in 2013 by CBI to beef up its regulatory watch over monetary and banking operations. The fund’s assets are generated through the membership fees of banks and credit institutions plus 0.25% of bank deposits.
The CBI report also outlined the recent problems caused by uncertified institutions, which case has also found its way to the parliament and has been promised to be closed by March 2018, noting that depositors will gradually recover their money.
The Cabinet also approved that a total of 166.6 billion rials ($4.4 million) worth of bank loans and credits will be spent to renovate infrastructure damaged in a recent flood in Tehran province. The credit will also be spent to rebuild a number of urban and rural homes.
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