Granting a line of credit or overdraft is possible only by obtaining collateral

According to the monetary news report quoting the public relations of the Central Bank, this bank, based on the provisions of part (3) paragraph (d) of note (16) of the single article of the 1401 budget law of the whole country, which explicitly emphasizes: granting new credit to banks and Non-bank credit institutions are prohibited by the Central Bank without receiving collateral in the form of credit line or overdraft. “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.

– It is appropriate for banks and non-bank credit institutions that currently have overdrafts to deposit collateral in accordance with the “Executive Instructions for Open Market Operations and Lending on Borrowing by the Central Bank” approved at the meeting dated 1/27/27. / 2009 and its subsequent amendments, including currency, gold and securities, 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 executive regulations of the supervisor, the Central Bank will sell its documents and fulfill its claims within the framework of a codified and continuous mechanism.

Central Bank while emphasizing the provisions of Circular No. 149153/96 dated 16/5 / 2017 has strongly requested banks and non-bank credit institutions to properly implement the notification circular.