The Alarm on Iran Banking industry goes off?
– Following the maximum disclosure policies on Iran Banking industry, the process of transforming granted facilities to bad debts has been accelerated over the recent months. According to the stats released by a senate committee, during the years from 2006 until September 2017, the volume of non-current claims has reached a record high (seven times bigger), which made the NPL/Facilities ratio to hover around a two-digit zone. A massive portion of these bad debts was in the range of IRR 100 – 1000 bn (USD 2.5 – 24 mn). Moreover, the size of doubtful debts from non-current claims reached more than IRR 600,000 bn (USD 14.82 bn) in the year 2016, which can be categorized as NPLs anytime soon.