Iran has officially declared Ayandeh Bank, one of its largest private financial institutions, bankrupt, a significant move given the country’s ongoing struggles with international sanctions. This decision was reported by state media on Saturday and comes as Iran faces severe economic challenges.
Established in 2012, Ayandeh Bank operated through a network of 270 branches across Iran, with 150 located in the capital, Tehran. However, the bank’s financial situation deteriorated over time, culminating in substantial debt, including accumulated losses estimated at around $5.2 billion and approximately $2.9 billion in outstanding obligations.
Following the bankruptcy announcement, customers flocked to a former Ayandeh Bank branch in Tehran, forming long lines as they awaited further information on their funds. A police presence was noted at the scene, indicating the heightened public concern surrounding the bank’s collapse.
In response to the crisis, state-owned Melli Bank has taken over the assets of Ayandeh Bank. The Central Bank of Iran has provided assurances that depositors from the now-defunct bank will be able to recover their savings. “The transfer from Ayandeh Bank to Melli Bank is now complete,” Melli Bank’s director, Abolfazl Najarzadeh, stated during a broadcast on state television.
Iranian Economy Minister Ali Madanizadeh sought to calm customers’ fears, assuring them that they have “nothing to worry about” following the controversial bank’s closure.
The backdrop to this financial turmoil includes the recent reimposition of stringent sanctions by the United Nations on Iran, which took place in September. These sanctions are a result of stalled negotiations over Iran’s nuclear program. These discussions had been fraught with tension, particularly following airstrikes on Iranian nuclear sites by U.S. and Israeli forces in June.
The latest sanctions are described as a “snapback” of previous measures that had been suspended in 2015, after Iran agreed to limit its nuclear activities in a deal brokered by former U.S. president Barack Obama. The situation took a turn for the worse when President Donald Trump withdrew the United States from this agreement during his first term, leading to a series of escalating sanctions against Iran.
