Iran: The Suicide of Bankrupt Creditors of Regime's Financial Institutes
By Staff Writer
A member of the regime’s parliament has reported the “suicide” of a number of creditors who fell victim to the financial institutions of Lorestan Province (in Iran’s west) and has called for action from the Central Bank. However, many consider the Central Bank itself the root of the problem, as it is the source of approval for such financial institutions in the first place.
Khoramabad’s representative in Parliament, Mohammad Beyranvandi, has commented on the reported suicides: “the economic and financial institutions are faced with new problems every day, which sadly, have led to the suicide of several creditors (of ‘Arman’ and various other institutes in Lorestan) as well as the breakdown of some families. Therefore, we must put a stop to this ongoing disaster”.
Whilst Beyranvandi addresses the financial institutions and the related “suicides”, the head of the Central Bank makes comments about putting a “complete stop” to “illegal” cyber-activities. Interestingly, the so called “legal” activities of the mentioned financial institutions are approved by the very same Central Bank.
The economic activities of these institutes, which affiliate with the regime’s Revolutionary Guard Corps as well as other government sectors, have led to the bankruptcy of many investors who have lost their savings and assets along the way.
Thousands of investors have slowly become bankrupt and are now so hopeless that they see no other way but to express themselves through protesting. The lack of repayments from these institutes has negatively impacted millions of lives in Iran. The pressure on people is evident from the widespread protests that were witnessed earlier this year, in January.
Economic experts blame the Central Bank as the main cause of all this mess, as financial institutions obtain their initial rights from this bank. Economists pertain the problem especially to Central Bank’s insufficient investigation of the financial accounts of such institutes. For instance, the bank paid very little attention to the debts of the founders of Caspian Institute (formerly known as Arman).
The other problem, which is a major one, has to do with certain “influential” people and “strong” organisations who interfere with the formation of these financial institutions using the “solid support” behind them. On 2nd April, the head of the Central Bank himself, Valiollah Seif, stated that following up on the issues of certain financial institutions, has “cost” him in some ways.
The financial crisis of these institutes in Iran began in the time of Rouhani’s presidency as well as Seifi’s management of the Central Bank; in other words, in 2013, when the institutes increased their interest on savings, to attract more investors and thereby, reduce their own monthly debts.