Page 37 - IRANRptSep21

The Bahraini public prosecutor said the CBI instructed Future Bank to complete transactions via an “unapproved transfer system,” Bahraini state media reported.
The unapproved money transfer system was likely the traditional Hawala money transfer system, which uses intermediaries with money in their accounts to transfer sums on other people’s behalf.
Saeed Khatibzadeh, spokesman for Iran’s foreign ministry, said: “Such cases and baseless claims and accusations against the Central Bank of Iran, Saderat Bank, Bank Melli and some managers of these banks, are mainly driven by political ends and are legally void.”
He said Iran was not informed of the court case, except via media reports in Bahraini and international media.
“Apparently, in these cases, the Bahraini court is solely executing the orders and decisions of Bahrain’s political and security apparatus. These cases also fail to meet judicial standards on fair investigation and trial and the Iranian parties were deprived of their basic rights. The judicial proceedings have also been nontransparent and faulty,” Khatibzadeh added.
8.1.1 Liquidity / assets
Iran’s liquidity expands to IRR18.82 quadrillion in Persian year ending March 2019
The Central Bank of Iran (CBI) has reported on July 8 rial liquidity grew 23.1% to reach IRR18.82 quadrillion (around $447bn) in the previous Persian calendar year (to March 20).
Liquidity continues to grow due to the devaluation of the rial against a basket of other currencies. With prices continuing to creep upwards, the pace of growth is likely to be higher than the CBI’s official statistics.
The share of M2 money stood at in March at IRR2.85bn (more than $67.6bn) “Quasi money” – money sitting in bank savings accounts – stood at IRR15.97 quadrillion (above $379bn) registering a growth of 19.6% y/y.
Overall, banks and financial institutions in the country are said to hold above IRR1 quadrillion in assets, which the domestic economy is struggling to reabsorb.
8.1.2 Loans
Iran’s banks ‘lent IRR9,750 trillion to businesses in 2019-2020 Persian year’
Iran’s banks lent Iranian rial (IRR) 9,750 trillion ($62.9bn at the free market rate, $232bn at the official rate) to businesses in the 2019-2020 Persian year (ended March 19), marking a rise of IRR2,012tn or 26% y/y, according to Central Bank of Iran (CBI) data published by DEN Group on April 30.
Companies across the board in Iran suffered significant losses during the Iranian calendar year, with the severe US-sanctions-triggered depreciation of the rial against hard currencies and other market impacts of the sanctions making life very tough for the business world.
The CBI said in its annual report on the performance of the country’s banks that the services sector received IRR3,285tn, or 34%, of the awarded loans. The industries and mining sector was the next biggest beneficiary, accounting for IRR3,172tn, while companies in commerce received 19% of the total. Looking at loan amounts and destinations, the CBI said companies in services received an average $5,300 at the free market exchange rate, while the average for other sectors was $3,000.
37 IRAN Country Report September 2021 www.intellinews.com