Gov’t Alone Not Responsible for Economic Ills

The plethora of economic problems gripping the country cannot be blamed on the executive branch because they also have their roots in the dysfunctional banking system, Mahmoud Sadeqi, a reformist lawmaker said, as President Hassan Rouhani is expected in Parliament to defend his record later this month.

A motion has been put forward by 80 lawmakers to question the president about the mounting economic ills and his government’s performance.

Asadollah Abbasi, a member of the Majlis Presiding Board, told ICANA in remarks published on Saturday that the president has agreed to come to the Majlis on August 28.

  Other Factors

In a recent talk With IRNA, the usually blunt Sadeqi said apart from government policies, there are other major players that have contributed to the current problems.

"There is no doubt that the administration, as the executive branch of the government, has a role in these issues. But it does not mean that other bodies have no role. Part of the problems originate from structural flaws in our economy in which all parts of the ruling system are involved. The Majlis is also responsible for part of the problems."

"Those who have put forward the motion to question the president have a bigger role," he said, adding that critics and opponents of the administration have prevented the implementation of some of its economic plans.

For instance, Sadeqi said, the failure to adopt the necessary anti-money laundering measures in a timely manner has contributed immensely to banking restrictions and prevented Iran from fully benefiting from the lifting of the sanctions after the conclusion of the 2015 nuclear deal.

Iran’s lenders have long operated in an environment characterized by low capital adequacy requirements, weak supervision and a scarcity of independent auditors.

  FATF Demand

He was referring to the fact that Iran has been trying to implement transparent financial regulations demanded by the Financial Action Task Force, an inter-governmental organization which underpins regimes combating money laundering and terrorist financing.

In June, FATF said Iran had until October to complete the reforms or face consequences that could further deter investors from the country, which has already been hit by return of the illegal US sanctions.

Sadeqi concurred that some of the administration's policies were wrong, but noted that various positive steps have also been taken in the economic field, including curbing inflation.    

The current situation is the product of US breach of its promises, the MP said, referring to the US withdrawal from the international nuclear agreement.