Iran Declares Major Bank Bankruptcy Amid Sanctions

TEHRAN, Iran – In a surprising turn of events, Iran has announced the bankruptcy of one of its largest private banks, Ayandeh Bank, with its assets now taken over by the state. This decision was reported by official media on Saturday, highlighting the ongoing challenges faced by the country under international sanctions.

Established in 2012, Ayandeh Bank operated a network of 270 branches across Iran, with about 150 located in the capital, Tehran. However, the bank recently succumbed to financial difficulties, accumulating losses around $5.2 billion and debts close to $2.9 billion, as stated by the ISNA news agency.

Customers were seen lining up outside a former Ayandeh Bank branch in Tehran on Saturday, with police in attendance, according to an AFP reporter.

The assets of the now-defunct Ayandeh Bank have been taken over by state-owned Meri Bank, following a decision from the central bank to assure depositors that their savings would be returned. Meri Bank’s director, Abolfazul Najalzadeh, confirmed on state television that the transfer from Ayandeh to Meri Bank has been finalized.

On Thursday, Iran’s Economy Minister, Ali Madanizadeh, reassured Ayandeh Bank customers, saying, “They have nothing to worry about.”

According to Hamidreza Ghaniabadi from Iran’s central bank, the bank’s woes can be traced back to “bad loans.” He indicated that over 90% of Ayandeh Bank’s funds were allocated to projects managed by its officials, which were never repaid.

Ayandeh Bank was involved in several high-profile projects, including the Iran Mall, a substantial shopping complex in Tehran that features an ice rink and a movie theater. Alongside Ayandeh, five other banks are reportedly struggling: Sarmae Bank, Day Bank, Sepa Bank, Iranian Zamin Bank, and Meral Bank, as per the Tasnim news agency.

The situation is further complicated by the reimposition of strict sanctions on Iran by the United Nations this past September. These sanctions came after months of stalled diplomatic efforts to revive nuclear negotiations post-strikes by Israeli and American forces on Iran’s nuclear sites in June. The recent sanctions are a “snapback” to measures that had been lifted in 2015, when Iran agreed to significant restrictions on its nuclear program, a deal that was abandoned by President Trump in 2018.