Page 44 - IRANRptJul22

Tejarat (Trade Bank) are among those closing branches.
The state lenders have reportedly sold off branch assets for IRR280tn ($1.2bn at the free market exchange rate, but $6.7bn at the official rate) since January 2018 to private developers. The buildings are typically turned into restaurants or are torn down to make way for apartment complexes.
In the period stretching from the start of President Hassan Rouhani's first term in 2013 to the end of 2017, the state banks sold IRR135tn of commercial real estate assets, the report noted.
Successive governments in Iran have mounted increasing pressure over the years to force banks to divest all non-core assets, including companies that have come under their control following bankruptcies, impaired loans and bad debts.
Earlier in August, MBI announced it had divested non-core assets (commercial real estate and other assets) valued at IRR17.4tn ($102) in the previous Persian year (ended March 19).
Last November, MBI failed to find a buyer for the National Development Investment Company, which it listed as having a value of €1.4bn. The business appears to have a level of debt that makes it unattractive to buyers.
Other failed sales concern some retail bank branches in Tehran and elsewhere. MBI and other banks have attempted to dispose of them, but due to the ongoing inflationary effects of the severe devaluation of the Iranian rial, they have struggled to find buyers.
8.2 Central Bank policy
Iran’s central bank ‘preparing to issue cryptocurrency’
Iran’s e-payment transactions up 17.4% y/y in sixth Persian month
The Central Bank of Iran (CBI) is making preparations to issue a cryptocurrency, semi-official news agency Mehr reported a banking official as saying on September 1.
Ismael Lellahgani was cited as saying that the CBI by placing a virtual currency in circulation intended to cut money printing costs and reduce risk in domestic private sector electronic financial transactions.
For several months, the CBI has been working on permitting the processing of goods imports using domestically mined Iranian rial-based cryptocurrencies. In late April, the central bank approved import payments made in certain cryptocurrencies.
A new central bank decree outlines how Iranian cryptocurrencies for use on the market must be from miners authorised by the Ministry of Industry, Mines and Trade.
Moreover, authorised banks and foreign exchange outlets are only permitted to pay for imports in cryptocurrencies in accordance with CBI guidelines.
Iran puts to use cryptocurrencies in neutralising some impacts of US sanctions on Iranian financial transactions with the outside world.
Iran’s e-payment transactions network, Shaparak, processed more than 3.42bn transactions in the sixth Persian calendar month to September 21, marking a 17.38% y/y increase, Tehran’s Financial Tribune has reported, citing official data.
Payments with cards were up 8.49% m/m, while the value of transactions increased by 20% m/m and 32.75% y/y to Iranian rial (IRR) 6.4qn ($23.7bn at the free exchange rate).
Card payments in Iran continue to grow as cash falls by the wayside due to increasing prices and the Central Bank of Iran (CBI) refusing to print higher denomination bills than Iranian rial (IRR) 1mn ($3.70 at the free market exchange rate). The jump in digital payments can also be attributed to growth
44 IRAN Country Report July 2022 www.intellinews.com