‘Compulsory Loans’ Decreased
Economy, Business And Markets

‘Compulsory Loans’ Decreased

The research center of the parliament has attended the issues concerning compulsory loans –loans that commercial banks have been forced to grant in recent years – in next year’s budget bill, which is expected to go to the floor for a vote in few weeks, a new report said.
As compulsory loans would not allow for the optimal allocation of financial resources within the banking system, the amount of such loans has now slightly decreased in the budget bill for the following year, news website Banker reported on Wednesday.    
During the previous administration commercial lenders were forced by the government to give low interest loans, known as compulsory loans, to finance national projects or shore up bankrupt businesses. The cheap loans were offered to businesses which were not economically justified, critics say, leaving banks with rising non-performing loans.  
Vulnerable echelons of the society were to be the main eligible applicants of the soft loans. Loans were also given to newly-weds to promote marriage.
Banks were obliged to give more than 360 trillion rials ($13 billion) in compulsory loans, during the current fiscal year, ending March 20. But only 15 percent of the amount was provided in the first six months of the current fiscal year, according to CBI statistics.
The huge amount of compulsory loans has greatly undermined the banking system. Thus, regulations on the issue have changed and obligations of banks would be reduced in the budget bill.

Short URL : http://goo.gl/AfOc6E

You can also read ...

Economic War on Iran Is War on Eurasia Integration
Hysteria reigned supreme after the first round of US sanctions...
Emirati Paper: Baghdad Expected to Maintain Strong Economic Ties With Tehran
Iraq’s ties with Iran are likely to grow stronger as a result...
 New ATR Planes Join Iran Air Fleet
The ATR 72-600 planes recently delivered to Iran Air have...
German Rail Operator, Deutsche Telekom End Iran Projects
German rail operator Deutsche Bahn and Deutsche Telekom are...
NZ Exporters Wary of Rising  US-Iran Trade Tensions
New Zealand exporters are looking to worsening US-Iran...
Decline in Forex  Rates Expected
While the foreign exchange rates are still considered bullish...
Australian Teen Hacked Apple’s Computer Network
An Australian teenager has pleaded guilty to hacking into the...
ICT Minister Sees Bright Future for Local Startups
Unperturbed by the current economic volatility that Iran is...