Tishwash: Banking Reform Takes Center Stage Once Again
Reforming the Iranian banking system, whose representatives have been grappling with a variety of issues, has once again come to the fore of national dialogue at a time when the Central Bank of Iran is trying to enforce lower interest rates.
President Hassan Rouhani was on state television to address the woes of banking system among other things and outlined what his administration plans to do in its second term that started this month.
“We have to overhaul the economy,” he said, referring to CBI’s plans to allocate 300 trillion rials ($7.7 billion) in loans to small- and medium-sized enterprises to assist production and boost job creation.
Support for SMEs holds significance, especially since the administration needs to create close to a million jobs during the current fiscal year ending in March 2018.
As Rouhani said, “The role of banks in this regard will be great.”
But for lenders to be able to support production, they will need backing from the administration since, as the president notes, “their primary problem is that they are low on capital, so we need to boost their capital”.
Their second major hurdle is the “unhealthy competition” taking shape in the banking sector, which the president says must end. He added that at present, a number of banks secretly offer higher interest rates to attract more deposits.
He also pointed to illegal credit institutions and said “we still need to take steps to complete what has already been done”, in reference to CBI efforts to resolve the problems of illegal institutions.
Post From Dinar Alert
DA Member News Highlights & Comments 8-31-17
Enorrste: This article (Below) reads like a grade school primer. It lays out all of the factors involved but doesn't actually make any committments, except for one: it clearly refers to moving to a floating dinar rather than to an RV. Oh, it also makes it clear that the IMF is behind all of this maneuvering.
I agree with KAP: can't expect much in terms of incoming investment until the IMF has completed its work to get Iraq positioned to move from Article XIV to VIII.
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