TEHRAN (Financial Tribune) – Iranian Banks’ debt to their Central Bank (CBI) have been rising at an alarming rate in recent years and the issue has become a major challenge for the banking system. The unpaid debts are a major factor behind the bulging liquidity and the galloping inflation.

CBI data shows the money owed by banks to the regulator during the calendar month ending August 22 totalled 1,480 tln rials ($10.48 bln), registering an increase of 34.8% compared to last year’s corresponding month and up 12.7% compared to the last month of the past fiscal that ended in March 21.