BMI’s Capital Exceeds $5b

Bank Melli Iran has benefited from another recapitalization worth 11.5 trillion rials ($295 million) which increased the capital of the bank to 198.5 trillion rials ($5.09 billion), BMI’s official website reported. The new recapitalization was approved about four months ago in the bank’s general meeting. After getting the approval of the Central Bank of Iran’s Certification Department, BMI implemented its latest recapitalization on October 3. About a year ago, BMI had another recapitalization of more than 88 trillion rials ($2.2 billion). Recapitalization of state-owned banks is a part of the government’s plan to help fix the credit crunch besetting the economy since the banking system provides more than 90% of funding for economic activities.