Iran banks have $38 bln in debt arrears

The Iranian banking system has loans in arrears of almost twice its amount of capital, a senior official said in remarks published on Saturday, describing it as a "serious problem".

Mostafa Pourmohammadi, head of the National Inspectorate Organization, blamed "defective" legislation as well as "lack of adequate attention" by the banks themselves for the situation.

In comments carried by the Hayat-e No daily as well as other Iranian media, he did not single out any individual banks.