Director of Largest Iranian Bank Confirms Government Unable to Pay Obligations
In a surprising statement yesterday, Mohammad Reza Khavari, Director of Bank Melli Iran - Country's largest public bank- admitted that Iranian government is unable to pay back its $5 Billion debt to the bank. Last week Iranian government declared that effective immediately, investors and account holders can no longer transfer or withdraw more than $15000 in funds from their bank accounts. There are reports of clashes between account holders and guards at banks limiting cash withdrawals.
Last year Bank Melli had reported the total value of its delinquent receivables as $2.1 Billion but it was later corrected to $14.2 Billion. Iranian banks have reportedly piled up $48 Billion in losses due to non-collectable (bad) debt, mostly owed by government agencies, investment companies managed by Iranian Revolutionary Guards, and individuals often called "well-connected" by the reformist media.
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