Banks Urged to Go Easy on Borrowers

First Vice President Es’haq Jahangiri called on the chief executives of banks to be more lenient on borrowers when demanding collaterals and loan guarantees. Jahangiri, who was addressing a gathering of bank CEOs attended by economy and industries ministers on Monday, pleaded with top bankers to do away with undue strictures on loan terms while observing the regular standards of banking profession, IBENA reported. The vice president was referring to government efforts to bail out struggling small- and medium-sized production units that have been hit hard by a years-long recession and the subsequent cash crunch plaguing the banking system. Banks’ public image has been tarnished in recent years due to a string of corruption scandals and rent-seeking that gave rise to a significant surge in non-performing loans in the Iranian banking system.