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| Syria-Lebanon-Iran |
| In Iran, 90 people owe $8 billion to banks |
| 2009-08-24 |
| While most Iranians are forced to negotiate a maze of regulations, paperwork and excessive collaterals for small home loans, 90 persons have managed to secure collective facilities totaling $8 billion from banks. In a wide-ranging interview reported in the Etemaad newspaper on Saturday, a member of the Majlis (Iran's parliament) Planning and Budget Committee, Musa al-Reza Sarvati, disclosed the information. He criticized various aspects of the government's economic policies, especially those that govern banking. "Among the major causes of corruption in the banking sector is their being state-owned. Because state banks provide loans at 12 percent whereas the market rate is 24-25 percent, while most of these facilities are given to individuals who provide special fringe benefits for the banks themselves," Sarvati said. "The resulting pressure from this contradiction adversely affects those who need far smaller facilities," he added. "At present, banks have $27 billion unpaid, outstanding loans, which they cannot collect, while a delegate from our committee to the Financial Corruption Panel has reported that $8 billion worth of loans have been given to 90 people," he explained. "Through a rough calculation, we find that this is about $90 million per person." "This is while no action has been taken about the repayments of these loans to the banks at all," Sarvati concluded. Pointing to the huge increase in the money supply during the first term of President Ahmadinejad, Sarvati went on to say that, "increasing the money supply is a result of wrong financial and monetary policies." |
| Posted by:Fred |
| #1 In other news, ZANU-PF loots gadzillions, bank-notes too expensive to print with all them zeros. I guess the 25% interest, (haram?), makes up for a lot of bad debt, but still leaves a short-fall, kaffir style. Ah, the Islamic world of Kaffirdom. |
| Posted by: rhodesiafever 2009-08-24 15:35 |