Credit line or overdraft, only with collateral

According to the Iran Economist, the Central Bank, in accordance with the provisions of part (3) of paragraph (d) of Note (16) of the single article of the Budget Law of 1401, which explicitly states that “granting new credit to banks and non-bank credit institutions without collateral in “The format of the credit line or overdraft is prohibited by the Central Bank. The type and amount of acceptable documents subject to this paragraph shall be determined by the Monetary and Credit Council.” Communicated the following to banks and credit institutions.

From now on, granting a line of credit or overdraft will be possible only by obtaining collateral.

Banks and non-bank credit institutions that currently have overdrafts, to deposit collateral in accordance with the “Executive Instruction for conducting open market operations and granting credit in the form of collateral by the Central Bank” approved at the meeting dated 01.28.2018 and its subsequent amendments from Including currency, gold and securities to apply to the Central Bank.

It is obvious that in case of non-timely settlement of overdrafts of the bank or non-bank credit institution within the specified period which will be mentioned in the supervisory executive regulations, the central bank will sell its documents and fulfill its claims within the framework of a codified and continuous mechanism.

The Central Bank, while referring to the provisions of Circular No. 149153/96 dated 05.16.2017, has strongly requested banks and non-bank credit institutions to properly implement the circular. .