President Mahmoud Ahmadinejad (c) and Vice-President Parviz Davoudi (r) are seen during the induction ceremony for Mahmoud Bahmani the new governor of the Central Bank on Monday.
President Mahmoud Ahmadinejad on Monday said that an indigenous and Islamic model should soon be devised for the national economy.
“The belief that economies are regulated through the free market in the capitalist world is a big lie. It only ensures the interests of thieves and charlatans,“ added the president, who was addressing the induction ceremony for Mahmoud Bahmani, the new governor of Central Bank of Iran (CBI).
“We should have a banking model that is compatible with the conditions of our country. It is not appropriate, for example, that we translate a series of issues and equations (from the western world) and use it in the country without paying heed to domestic economic paradigms.
If we want to implement capitalist formulas, the end result will be what we are currently seeing (the meltdown in western markets). Now we witness how America, which boasts of having the ultimate word in global economic affairs is grappling with intricate problems.Other countries that followed the market economy are suffering. Do we want to reach that stage? Of course not.“
Demand for Repayments
The chief executive emphasized that the banking system should be repaid all the money that some “fat cats“ have borrowed for a long time and are not fulfilling their commitments.
“When this money is returned, production will rise and we can even increase government revenues. É When banking resources of the country are not managed properlyÉ the government’s revenues decrease and economic growth is hindered. É
I also believe that bank resources (loans, credits) should be utilized in the best possible manner and be managed efficiently.
The worst thing for a banking system is that it get entangled into politics and partisanships.
We should all be careful.“
He referred to the deep crises in the global economy and the laissez -faire economy and said, “Over the past two to three years I warned that the path this (global) economy has taken is problematic and on the verge of collapse. Needless to say, the capitalist system cannot have a happy ending because its very foundations lack justice.“
He noted, “Our banking system is currently monopolized. We established 10 private banks so that the banking system would be rid of monopolies. But that did not happen and the monopoly still lingers.“
The CBI should perform in accordance with the rule of law and get back the money it has borrowed, the president declared.
“Those who abuse the banking system should be brought under control. I suggest that the banking system start with government employees and if they do not have money they should return their shares and stocks,“ he told the meeting.