Thu Feb 04, 2010 | 17:38
USD 38 billion delinquent loans to Iranian banks
Fri, 09 Oct 2009 14:31:10 GMT
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Head of Iran's General Inspections Organization, Mostafa Pourmohammadi
The head of Iran's General Inspections Organization (GIO) says that collectively, Iranian banks have some USD 38 billion of delinquent loans, while they are only capitalized at USD 20 billion.

Speaking to reporters on Thursday, at an event organized by Iran's Export Development Bank, Mostafa Pourmohammadi complained of the “excessive” amount of delinquent loans, according to the official website of the GIO, which operates under the auspices of Iran's Judiciary body.

He said that some of the existing laws are inadequate, adding that the government should seek to arrange for more “expert studies” into the subject, according to GIO's official website.

Nevertheless, Pourmohammadi, who is a former prosecutor and interior minister, attributed some of the blame to the banks, and said that the government's auditing body considers the banks responsible for the situation and that they should act seriously to recover their outstanding loans.

He said that the current average for late debts of Iran's state banks is over 15 percent, which is “far higher than the global standard of 3 to 5 percent.”

He called on the Parliament (Majlis) to approve the government's proposed bill for the repayment of the government debts to the banks, as, in his view, the banks are in dire need of the money, given their poor state of health at present.

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