Page 42 - IRANRptAug22

8.0 Financial & capital markets 8.1 Bank sector overview
Central Bank of Iran releases list of largest corporate debtors to state in banking
The Central Bank of Iran (CBI) on April 20 released a list of banks it classifies as the country's largest corporate debtors to the state in banking. It is a list that goes some way to bringing home the high levels of debt throughout the country’s monetary system.
The list is seen by some observers as an attempt by the Raisi administration to bring non-viable lending enterprises under government control under special measures or attempt to sell them on to new buyers.
It includes Eqtesad Novin Bank, Iran Venezeula Bank, Bank Pasargad, Post Bank, Bank Tejarat, Refagh Kargaran Bank, Bank Saman, Bank Sepah, Gharz al-Hasaneh Banks Mehr and Resalat, Bank Karafarin, Bank Keshavarzi, Tourism Bank and Bank Mellat, a release on the CBI website stated.
The banking debts were listed to “clear the way for transparency in the banking sector”, the release added, but the long list of both government-backed and private lenders underlines the severity of the internal financial crisis inside Iran. The CBI said that the accrued debts of the banking sector would from now on be published on a quarterly basis.
Iran’s domestic media appears to have been unable to report the names of the debtor banks due to the sensitivity of the information.
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
Bank lending in Iran grows 59% in first 10 months of Persian calendar year
Iran's banking system disbursed loans worth Iranian rial (IRR) 22.964 quadrillion ($86.1bn at the free exchange rate) of loans in the first 10 months of the current Persian calendar year (March 21, 2021 - January 20, 2022), marking a 59.4% y/y expansion, official news agency IRNA has reported.
Working capital loans exceeded IRR15.205 quadrillion (around $57bn), accounting for 66.3% of all the loans, it added, citing central bank data.
42 IRAN Country Report August 2022 www.intellinews.com