Iranian Banks Lend $16.8 Billion in 5 Months
EghtesdaOnline: Banks and credit institutions allocated 2.4 quadrillion rials ($16.82 billion) to various sectors during the first five months of the current fiscal that ended on August 22, the Central Bank of Iran said.
According to the latest report published on the regulator's official website on Sunday, the figure was higher by 325.6 trillion rials ($2.27 billion) or 15.6% compared to the corresponding period of the previous year. The money was given in the form of an estimated 3.42 million loans.
As usual, the services sector was at the top of the list of loan receivers with 1.91 million loans worth 980.71 trillion rials ($6.85 billion). It was followed by the industry and mine sector that borrowed 680.01 trillion rials ($4.75 billion) in the form of 99,204 loans.
The trade sector took out 414,258 loans worth 320.83 trillion rials ($2.24 billion) during the period. The lender afterward prioritized the agriculture sector with 550,610 loans worth 217.05 trillion rials ($1.51 billion) and the housing and construction sector with 444,095 loans worth 207.71 trillion rials ($1.45 billion), according to Financial Tribune.
A total of 1,094 loans worth about 1.65 trillion rials ($11.53 million) was listed as miscellaneous in the CBI report.
Loans allocated for facilitating working capital accounted for the lion's share of the loans at 61.6% or about 1.48 quadrillion rials ($10.37 billion). The figure was 149.5 trillion rials ($1.04 billion) or 11.2% higher than the total number of working capital loans handed out in the corresponding period last year.
‘Miscellaneous’ loans had the second highest share at 10% or 241.07 trillion rials ($1.68 billion). Loans doled out for establishing a business had a share of 8.5% or 205.74 trillion rials ($1.43 billion) and personal loans had a 7.4% share equal to 177.23 trillion rials ($1.23 billion).
The industries and mining sector was eligible for 570.27 trillion rials (($3.98 billion) or 38.4% of the total loans in the form of working capital facilities. It constituted 83.9% of all loans handed out to such businesses, which the central bank said indicates the prioritization of resource allocation to the key sector by banks and credit institutions.
In terms of the average amount of loans, the industries and mines again topped the list and had the highest per-loan average of 6.9 billion rials ($48,218). The services sector had the lowest per-loan average of 500 million rials ($3,494).