Iran’s Central Bank has issued a circular to the banks’ network regarding the execution of a newly enacted law with the purpose of facilitation of repayment of the debts to the banks and credit institutions.
According to this law, to support domestic production and to facilitate the clearing of debts of producers, they have an option to apply to their banks for the repayments of their debts under new conditions, if they have not paid all or part of their debts by the due date with the condition that repay their debts in cash. Accordingly, the same contract shall be the basis for calculating the debt under this Act and the amount that the debtors must pay to the bank or credit institutions shall be the principal debt amount plus the simple and non- compounded interest rate. Also, all their fines and penalties shall be discarded. We are expecting the issuance of the executive circular within the next two weeks. Ultimately those who want to use this law are required to submit their applications until March 2020.