Rouhani not pleased with $72 billion debt burden left behind by former administration
President Hassan Rouhani inherited an economy in recession as international sanctions against the country weakened its currency and accelerated inflation to about 40 percent in September.
The administration of former Iranian President Mahmoud Ahmadinejad has left 1,800 trillion rials (about $72 billion based on the U.S. dollar official exchange rate of 24,900 rials), President Hassan Rouhani said on Monday.
The government is now indebted the sum to the banking system, the private sector, and contractors, Rouhani was quoted as saying by the Mehr News Agency.
Meanwhile, Iranian First Vice President Es’haq Jahangiri has said that bad loans of the Iranian banking system amount to 700 trillion rials (about $28 billion).
More than 110 trillion rials of the loans have been received by 23 persons, a majority of them are not doing production activities, he added.
The administration is resolved and committed to follow up the case and return the sum to the banking system, he stressed.
In September, the World Bank removed Iran from its list of deadbeat borrowers, saying the Islamic Republic had paid outstanding loan amounts.
The Bank said that its key lending unit, the International Bank for Reconstruction and Development, "has moved all loans to the Islamic Republic of Iran from non-performing status to performing status following the payment of all overdue amounts on these loans."
The Bank had placed Iran's account on non-performing status on July 16, when the country fell six months in arrears in paying $79.1 million on nearly $700 million in outstanding loan principal.
The Central Bank of Iran will focus on controlling liquidity and bringing down inflation as President Hassan Rouhani has agreed to separate monetary and fiscal policies, giving the central bank more independence, Central Bank of Iran Governor Valiollah Seif has said.
He added that President Hassan Rouhani inherited an economy in recession as international sanctions against the country weakened its currency and accelerated inflation to about 40 percent in September.