Iran has declared one of its largest private banks, Ayandeh Bank, bankrupt, with its assets absorbed by the state-owned Melli Bank. This rare move comes as Iran grapples with international sanctions, chronic inflation, and a depreciated currency, which have severely impacted the country’s economy. Ayandeh Bank, founded in 2012, had a network of 270 branches across the country, including 150 in Tehran alone. However, it had accumulated losses amounting to $5.2 billion and debts of $2.9 billion, prompting the Central Bank to transfer its assets to Melli Bank.
The Central Bank has assured depositors that they will be able to recover their savings, and Economy Minister Ali Madanizadeh has stated that Ayandeh Bank customers have “nothing to worry about.” The bankruptcy is attributed to “bad debts,” with over 90% of Ayandeh Bank’s funds allocated to related parties or projects managed by the bank itself, which were never repaid. This move is part of Iran’s efforts to address its economic challenges, but it also highlights the country’s vulnerability to international sanctions and economic pressures. Five other Iranian banks, including Sarmayeh, Day, Sepah, Iran Zamin, and Melal, are also facing difficulties.
