Controversy surrounds billion-toman loans to Iran’s stock market board amid public outcry

The loans, which were reportedly approved by the board, sparked widespread criticism, particularly due to their favorable terms compared to the high-interest loans available to the public.

Iran’s Minister of Economic Affairs and Finance, Abdolnaser Hemmati took to social media on Thursday, to address the scandal. He wrote, “Following the report from the General Inspection Organization regarding the interest-free loans received by the chairman and members of the SEO board, I have referred the matter for an immediate expert review by the Ministry’s inspection office. In the fourteenth government, we have come to eliminate rent-seeking, and no one will be allowed to engage in special privileges.”

Earlier in the day, a letter from the General Inspection Organization to the Minister of Economy was leaked, detailing the loans given to five members of the SEO board.

The most substantial loan, amounting to 2.7 billion tomans, was reportedly granted to Majid Eshqi, the chairman of the board, with a repayment period of 10 years at a meager 4% interest rate.

Public frustration has mounted as comparisons were made between these favorable loans and the burdensome loan conditions faced by ordinary citizens. For example, while Eshqi would only need to pay an additional 580 million tomans in interest over the next decade, ordinary Iranians seeking housing loans must endure interest rates of 22.5%, requiring them to repay nearly double the amount they borrow.

This stark contrast has fueled criticism of the perceived privileges enjoyed by high-ranking officials, particularly at a time when many Iranians struggle to secure basic financial support for housing and other necessities.