Late October, news releases reported that one of the accused of the embezzlement in the Pension fund system, whose charges are over $125 billion, fled Iran Persian BBC confirmed.
Iran “Economic Mirage” under the Khomeinist regime was collapsed before it could breathe as an alternative as the hostage taker regime lays on. Iran quickly and simultaneously entered the war with Iraq [in the favor of Khomeini] and so far sanctions impacted Iran. Iran Treasury comes empty after it forcibly spent petroleum dollars on military operations to defend the Islamic revolution, not Iran’s territory. The state treasury and debris were empty as well as the regime fınally accepted ceasefıre.
Iran’s banking system faces serious problems such as the high rate of delayed loan payment, and high share of fixed assets (mainly real estate) in bank assets is one of the most important problems.
In the past decades in Iran, Bankruptcy in financial and credit institutions have also impacted the economy.
According to the latest Central Bank statistics Persian BBC released, the volume of liquidity at the end of July reached more than USD 324.250 million, which is about $293.500 million worth of penny money (types of investment deposits and savings and long-term deposits) and $40.750 million of money (types of deposits Visits and banknotes are in the hands of the people).
The report indicates that more than 10% of the deposits in financial and credit institutes is the total liquidity of the country. Now, the depositors, whose (estimated 2-4 million people) deposits have been stolen by the IRGC-backed institute, asks for their deposits, but, in fact there’s no more money to give them back. More than 6,000 alleged unofficial financial and credit institutions have been identified in the country, which reveals other dimensions of the banking system crisis. But, the people insistently say that the bank’s sign has been hacked on the boards of the institutions or cover headers. Many of Iranian economists believe that the IRGC-backed institutes have been running for money laundering, dirty money is fed by brokers (IRGC agents) to financial and banking systems, this money is then transferred to multiple accounts through complex methods.
In the IRGC method, physical money (bills) from primary incomes, which are largely illegal, are injected into financial institutions. Then IRGC establishes the financial and credit institutes to receive money from ordinary people for the normalization of this money laundering. But, the main problem is that the deposits have been destroyed (looted) probably in two methods; 1. IRGC loot the money because there’s no one to be responsible. 2. IRGC has no good plan to manage the financial system.
Depositors of financial institutions must pay their greed today, Deputy Head of the Judiciary says.
An Iranian economy expert, whose identity is hidden for security purposes, says the
Pension fund system was established in Iran to provide the financial future of the employees of a part of the economy after retirement. Although the Pension funding system is usually carried out by investment and economic experts, but, there are many structural deficiencies.
Both pension fund system and financial and credit institutes face major problems because; 1. They are state-backed institutions. 2. The institutions have no qualified management. 3. The institutions are infected with political and economic corruption. 4. The institutions are bankrupt. 5. The main investors, governmental employees, have no role in making decision of the system. In fact, the system has not any transparency, the local sources believe.
Among the attractiveness of financial and credit institutes (without Banking system rules) for IRGC agents is higher profit rates and better services, significant profitability, as well as margins such as the possibility of obtaining astronomical facilities by managers and shareholders, and the possibility of legalizing the flow of money from informal economic activities (money laundering).
How the financial and credit institutions were founded in Iran:
The Shiite tradespeople and merchants established unofficial Islamic institutions, called “Gharz-al-Hassan” in Persian, because they believe that the banking system in the Shah’s era was corrupt. In Islam, any usurpation is forbidden.
Mosques and religious centers also established some institutions by the pattern to pay loan to poors.
After the 1979 Revolution, the Islamic institutions have been extensively practicing and practically enjoying a form of “legitimacy” without being supervised by the supervisory authorities. Afterwards, Finance and Credit Institutions were established by IRGC or state-affiliated sections. In instance, the Bonyad Finance and Credit Institution was established late 80s. The Bonyad Finance and Credit Institution continues to be named Sina Bank, affiliated to IRGC’s Mostazafan Foundation of Islamic Revolution. Gharz-al-Hassan’ institutions in Iran reached to 3,000 branches across the country in late 80s, but, the number of branches reduced to 200 in 90s. The issued banking-law in 1985 led people taking out their money from the banks to the Gharz-al-Hassan’ institutions.
The adoption of the Lawless Banking Law in August 1983 led to the withdrawal of funds from banks and the growth of loan repayments.
All of the Finance and Credit Institutions, with the exception of a few of them, are affiliated to the IRGC.
In the mid-80s, two limited-partnership companies, named Be’sat and Nobovat were bankrupt after many of people deposited all of the money they had. The owners were allegedly arrested for charges of fraud, the former Saderat Bank CEO said. People deposit in the Finance and Credit Institutions because they are paid more interest than from banks. The institutions misuse the people’s ignorance of bank rules to get more profit.
They also exploit this problem with the uninformed people of the banking and credit system.
Experts believe that the authorities have never ever done their supervisory duties on Banking system since 1979 Islamic Revolution in Iran. “Economy Is For Donkey”, as the leader of Islamic regime in Iran, Ayatollah Khomeini said. How do we expect the country’s economy to be better than now, while the founder of the Khomeinist regime expressed it like that.
According to Article 11 of the monetary and banking law of the country, as the regulator of the monetary and credit system of the country, the Central Bank is obliged to monitor the performance of Banks and the Finance and Credit Institutions.
The unknown credit sources of the institutions is another reason of the current crisis in Iran Banking system.
Iran’s economy is sick and getting sicker day by day because of the systematic corruption, bribery, lack of oversight of financial institutions and large-scale embezzlement.