IRAN'S FINANCIAL CRISIS: SANCTIONS AND POOR ECONOMIC POLICY HAVE BROUGHT IRAN TO THE BRINK OF BANKRUPTCY

 


Iran has been under some of the harshest punishing sanctions from international authorities for some time now.  Its disobedience at laying bare its nuclear program has caused a backlash that has left the country bereft of funds and resources.

In a dramatic attempt to shore its finances, the Iranian government has plans to impose strong taxes on the population.  The information was not made public, but was instead leaked by a government worker. 

The document, which reveals the action to be taken by the government, details a plan that is to be put into effect following the 'sham' elections underway at the moment.  The document furthermore, issues from the central bank's governor, and reveals how the country is virtually on its knees.  

One of the greatest problems is the crippling inflation.   The Iranian currency has had a devastating downturn against the dollar since new sanctions have ordered against the rogue country.  Because the sanctions have put great roadblocks in the repatriation of petrodollars, the price of imported goods has skyrocketed.  

The report, if true, speaks of a need of liquidity that is nearly 40 billion dollars, just to shore up Iran's ailing banks.  

The unemployment rate, if the report is to be believed, is nearly 40%, a rate that is unsustainable and indicative of a devastating crisis. 

Another document in the same cache, apparently speaks of a 20% levy on bank deposits, a measure similar to that taken by the Cyprus government not long ago.  The additional measures proposed are food rations and taking the private banking sector and placing it under the Guardians of the Revolution's administration. 

It is not clear how Iran can still play a decisive role in the Middle East and specifically in the Syrian conflict and still be able to buy armaments from Russia in light of this economic crisis. 



Source : France 24/ 6.12.13

 

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