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EghtesadOnline: The general outlines of the amended “Sixth Five-Year Economic, Cultural and Social Development Plan (fiscal 2017-22)” bill was approved by the parliament late last year (ended March 20, 2016) and a week later by the Expediency Council.

Tables 1 to 3 exhibit various targets of the plan, according to the Middle East Bank’s latest quarterly report on Iran’s economy.

Sixth Plan Zeros In on Banking Problems


Among the most important articles in this plan are those aimed at alleviating the problems of the banking system.

Article 14 expands the Central Bank of Iran’s supervisory role in overseeing banking activities beyond those previously granted by the Monetary and Banking Act, Financial Tribune reported.

Accordingly, CBI will be able to restrict or ban major shareholders from receiving dividend payments and can also temporarily deprive them of their voting rights. It is also allowed to suspend some or all banking operations, and restrict or ban bonus payments to managers and disqualify the CEO or any member of the board of directors.

Besides, in order to extend CBI’s authority over the money market, it subjects all banking, leasing, foreign exchange operation and investment banks and funds to obtaining CBI permits.

Interest-free institutions (Qard-al-Hasaneh) with annual deposit takings of below 30 trillion rials are exempted from this law.

Although such institutions do not try to attract deposits by offering higher interest rates, they do contribute to money creation and they should be under CBI supervision.

On the membership of Money and Credit Council, Article 15 of the plan specifies its members and undermines CBI’s independence. The Guardians Council had earlier ruled that membership of individuals outside the executive branch would violate Article 60 of the Constitution.

Nearly all members are principally sympathetic to loan seekers and are prone to favor lower interest rates, regardless of the economic conditions.

Iran Banking Iran development Iran Development Plan Iran Banking Problems