Economy, Business And Markets

Gov’t Debt to Banking System Rises

Gov’t Debt to Banking System RisesGov’t Debt to Banking System Rises

The latest report by the Central Bank of Iran (CBI) has revealed that the government’s debt to the banking system have increased by 27.75 percent in the year ending September 22, 2014.

The increasing trend of the government debt has started since 2011 and continued into the current Iranian year (beginning March 21, 2014), and it is considered as one of the root causes of the increase in the pending receivables of the banks and the lack of resources in the financial institutions, the report said on Sunday.

The government’s debts to the banking system stood at 929.6 trillion rials in the one-year period, registering 33.9 percent growth, according to the report. Out of the total debt, 902.7 trillion rials is owed by the government and the remaining 26.8 trillion rials by its companies.

While the debt held by the government to the banking system has grown by 36 percent, the figure for the state-owned companies was -12 percent, showing that the have partly repaid their debts by the government has eventually added to its debts during the discussed period.