NCRI – Mohammad Ali Pourmokhtar, member of the justice and legal committee of the Iran regime’s Parliament, announced unprecedented bankruptcy rate of Iranian companies and said application for bankruptcy protection in the last two years has increased about 700 percent.
According to the state run Radio and TV’s news agency ‘IRIB’, Mohammad Ali Pourmokhtar on March 7 appeared in an exclusive interview on Channel 2 of IRIB and announced an increase in the rate of insolvencies in the last two years and about the rate of bankruptcy of companies said, “in less than two last years it has increased about 700 percent.”
Ezzatollah Yousefian MP and member of the Center for Combating Economic corruption also participated in this program and announced an increase in arrest of bank debtors and said: “A lot of bank debtors are in custody. According to the Tehran prosecutor since about a year ago and from the time of increased pressures on bank debtors, bankruptcy petitions have increased.”
Hossein Afzalabadi, a former Judicial Deputy of the Department of insolvency and bankruptcy of the regime, explained the bankruptcy causes of companies in this program. He described Iran’s uncertain economic situation as a main factor in the increased rate of bankruptcies, and said: “700 percent increase in the rate of bankruptcy is not caused by fraudulent acts of businesses and merchants but we have to accept the reality that given the poor economic conditions and sanctions, the ability of business owners and trading companies have been reduced and consequently they went bankrupt.”
However Mohammad Ali Pourmokhtar blamed the increase in fraud and fake bankruptcies for 700 percent increase. In this regard he said: “Some people misuse legal loopholes to create an opportunity for themselves to evade responsibilities and payment of bank arrears by fraud and fake and non-real documents. Some experts and evaluators may have colluded in this area. In this regard sensitivity has been created and the judiciary has issued instruction to figure out the real situation of bankruptcy claimants.”
Pourmokhtar said remedies have been applied and added: “Banks have various tools for evaluation but try to engage with the debtor to be able to get their debt and its interest from him but this issue also provides opportunity for abuse.”
