Inflation's Blade on the Economy; 17,000 Financial Debtors Banned from Leaving the Country

The Deputy of the Official Documents Department of the Iranian Registration Organization announced that 17,000 individuals have been banned from leaving the country due to financial debts from the beginning of the year until December. According to experts, a significant portion of this is due to problems created by inflation. Sadegh Saadatian identified these individuals as 'definite financial debtors,' including bank debtors, those with bounced checks, debtors of dowries, and those subject to Article 77 of the Municipalities Law. Saadatian reported that last year's 'exit bans' were 21,000 individuals and stated that the exit ban on those with confirmed debts is legal. His statements reference Article 17 of the Passport Law, which states that 'the government can prevent the issuance of passports and the exit of definite financial debtors and judicial enforcement and registration violators according to the regulations determined in the bylaw.' The acceleration of inflation, alongside a decrease in people's purchasing power and rising operational costs for businesses, has disrupted the economic equations of business owners, trapping them in a debt trap due to reduced liquidity. According to the latest statistics from the Central Bank regarding bounced checks in the banking network, both the number and amount of bounced checks have increased. Changes in business operations among various sectors, including restaurant owners and supermarkets, and the intensification of bankruptcy trends among professions are part of the current economic realities in Iran. In this regard, one brand owner in the restaurant sector stated in May that restaurants are closing due to reduced purchasing power, emphasizing that 55% of restaurants in Tehran have 'unintentionally' moved towards bankruptcy. On May 17, the head of the Restaurant Owners Union stated that between 30% to 35% of restaurant owners have canceled their business licenses and changed professions. Ali-Asghar Mirabrahimi attributed this situation to the sharp increase in food prices and the decrease in people's purchasing power. Analysts cite organized corruption, inefficiency in the management system, instability in economic decisions, alongside regional and international tensions that have led to increased sanctions and restrictions on various sectors of society as factors driving various aspects of society towards economic, social, and cultural bankruptcies.