The Central Bank of Iran data indicate further expansion of broad money in the first three months of the current fiscal year that started in March.“Broad money grew by 3.9% in the first quarter of the year…This was considerably lower than the projected target,” the CBI said in a press release without providing details about its forecasts.Numbers also show broad money jumped 29% during the 12 months to June 21, almost 8.8 percentage points lower than the same period last year. The CBI says it is striving to reduce the money growth to 25% by the time this calendar year ends. It said it managed to control the rise in broad money bringing it down to 31.1% by the end of last year. The figure was 39% in March 2022 and 40.6% in March 2021.The CBI says it managed to control monetary factors with the help of stringent financial discipline asked of banks and mitigating the impact of fiscal discipline -- related largely to how the government handles the steep budget deficits. Recent CBI measures include stringent credit policies, namely tighter restrictions on bank balance sheets, especially of distressed banks. The CBI says it is concentrating on controlling broad money by, among other things, maintaining monetary discipline in the troubled banking industry that has come under mounting censure by academia and prominent economists. Lending DataThe CBI reflected on its performance related to loans during the first quarter. The total amount of loans to the country's banking industry reached 9,213.5 trillion rials ($18.43 billion) – up 25.8% compared to the corresponding period in the previous year. Out of the total lending during the period, 85.2% was allocated to businesses and 14.8% to the people (households). It should be added that 66.5% of the total loans during the period was for increasing working capital of manufactures.Total loans by the banking network to various economic sectors in 2022 amounted to 44,485.3 trillion rials ($88.97 billion) -- a 45.3% increase on the previous year.CBI data also showed that 84.3% of the money given to industrial and mining units was for working capital. During the period banks gave 77.5 trillion rials ($149 million) in the framework of social assistance loans to 113,000 low-income applicants largely for youth marriage, childbirth and to help rent a home.  According to the CBI, banks accepted applications for childbirth loan worth 4.6 trillion rials ($8.8 million) during the month. According to way2pay website, Bank Melli accounted for the largest portion of childbirth loans in the first month of fiscal year or one-third of the total. Bank Refah was next with 19% of the childbirth loans.Some 44.5 trillion rials ($85.5 million) were marriage loans, up 37% y/y. Marriage loans are interest-free repayable in seven years. Couples can apply up to two years after the pronouncement of their marriage.  Banks gave security deposit loans worth 880 billion rials ($255m) to those wanting to lease a dwelling place. Security deposit loans were announced by the government in 2020 in the framework of the coronavirus aid package for the large numbers unable to rent a home due to the unprecedented increase in rents and home prices. (ICE TEHERAN)

Fonte notizia: Financial Tribune