Oil Company is a Major Creditor of the Government; Government Debt Grew by 61%

The latest report from the Research Center of the Parliament indicates that the total debts of the government and state-owned companies at the end of the year 1401 (2022) increased by 61% compared to the end of Shahrivar 1400 (September 2021). During this period, bond debts grew by 42%. The research arm of the Islamic Consultative Assembly also reported that the ratio of government and state-owned companies' debts to gross domestic product (GDP) at the end of autumn 1401 was 30.6%. According to this report, the total debts of the government and state-owned companies in the first six months of 1401 increased by 51% compared to the same period in 1400. The report highlights that a significant portion of the claims of state-owned companies is primarily related to the National Iranian Oil Company from domestic refining and petrochemical companies and foreign legal and natural persons. On the other hand, recent reports from the Central Bank of the Islamic Republic of Iran indicate that under President Raisi, borrowing by state-owned companies from the Central Bank has increased by about 60%, and borrowing from the entire banking system has risen by over 77%. Experts believe this trend has led to a nearly 60% increase in the debts of banks to the Central Bank. The Research Center of the Parliament also reported on August 26 that 'the average withdrawal from the National Development Fund during the tenth government (Ahmadinejad's second term) was $453 million per month, during the eight years of Rouhani's two governments it was nearly $700 million per month, and in the thirteenth government (one and a half years) the average was $1.12 billion per month.' Unlike Hassan Rouhani's government, Ibrahim Raisi's administration has reduced manipulation in the currency and stock markets, focusing on borrowing and withdrawing from the National Development Fund to cover budget deficits. This approach, like other methods of financing budget deficits, has had a negative impact on the economy and ultimately harmed household livelihoods. One day after the exemption for debt payments to Iran, the U.S. sanctioned 14 Iraqi banks. Verification of 10 claims by Ibrahim Raisi; Iran's economy has not grown.