Economy, Domestic Economy

Gov’t Debts Top $193 Billion

Gov’t Debts Top $193 BillionGov’t Debts Top $193 Billion

The government's total debts amounted to 6 quadrillion rials ($193.6 billion at the official exchange rate), said Economy Minister Ali Tayyebnia.

“Even though the amount is not significant at the international level, it has caused some problems inside the country,” Financial Tribune’s sister-website,, quoted Tayyebnia as saying during a meeting with Majlis Economic Affairs Commission on Saturday in the holy city of Mashhad in Khorasan Razavi Province.

“Government debts and problems in the banking sector are two major challenges facing the economy in recent years,” he added.

According to the minister, the banking sector's key issues are low lending power and high interest rates.

“Low capital levels, piles of non-performing loans, government debts to banks and non-banking businesses of lenders are the main sources of the problems in the country’s banking system,” he said. Tayyebnia proposed a plan for clearing the central bank’s debts to the government and the government’s debts to the banking sector and CBI through barter deals.