According to the International Stone Exhibition of Iran, while both the law on removing barriers to production and the decree of the Expediency Council in December last year, which became known as the Law on the Elimination of Bank Composite Profits, emphasize the need to respect producer rights and protect production, The banking system was reluctant to enforce the law, and some banks still confiscate manufacturing plants, factories with all the facilities, equipment, land, and equipment due to delays in the payment of fines and compound interest on production facilities. It was named the year of the mutation in production and support for the producer.

Criticism of a member of the Economic Commission for banks' opposition to eliminating compound interest

Meanwhile, Mohammad Hossein Hosseinzadeh Bahreini, a member of the parliament's economic commission, wrote a letter to Ayatollah Ra'isi, the head of the judiciary, on March 4, last year, alleging that some private banks were influencing the central bank's senior management and trying to delay the issuance of the profit removal circular. The compound, which was suspended for two months by the central bank alone, has complained that the judiciary has taken the banks seriously.

On March 17, 2009, the Cabinet announced to the Central Bank, the Ministry of Economy and the Program and Budget Organization that the banks would cooperate with the producers in the last working days and in line with the implementation of last year's budget law. 

Circular of the Attorney General: Provincial prosecutors have nothing to do with the property of the guarantors

Mohammad Jafar Montazeri, the Attorney General, also issued a circular informing the provincial prosecutors after the adoption of the law on the elimination of compound interest, in order to prevent the issuance of confiscation of property other than factories mortgaged by the bank and the value of the facility. They do not have other properties that have been mortgaged to the bank under the heading of guarantees, and the banks do not want their confiscation under the pretext of late interest and compound interest.

A history of persecution that guaranteed a producer

However, one of the citizens who was the guarantor of the facilities of one billion and three hundred and seventy million tomans of a factory owner in Malayer city by presenting four residential houses in 1391, said: He calculated the installments and compound crimes as six billion and four hundred billion tomans.

He continued: "Then, considering another loan, this bank stated that the total debts of this producer from other loans were twelve billion tomans and with its compound interest, thirty billion tomans; However, it is illegal to grant new facilities to a person who has multiple returned checks; The plant also went bankrupt due to the recession, and the bank that granted the facility confiscated four mortgage-backed mortgage units and sold them for a third of the actual price through an auction.

"By using its influence, the bank was able to lower the price of the factory below its real value, while if it was valued at the real price, it could settle the real principal and interest of the facility," he said.

According to this person, after his complaint to the court against the mentioned bank, the price of the factory along with its legal debts (including late fines without considering the compound interest) is estimated at ten billion Tomans; However, despite the directive of the Attorney General, the Court of First Instance and the Court of Appeal of Hamadan Province issue a ruling in favor of the bank; In other words, the judges of the Court of First Instance and the Court of Appeals have upheld the compound interest, which has been recognized by both the Legislative Assembly, the Legislative Assembly and the Immaculate Conception Authority, as opposed to the Attorney General's Circular.

Banking Law Expert: The multiplicity of laws has left banks free to confiscate producer property

A legal expert from a quasi-state-owned bank commented on the banks' action to confiscate the property of guarantors and traffickers under the pretext of the principle and benefit of late payment facilities and fines and compound interest. If the producer fulfills its obligations, the government will hand over the land and the nobility to the producer.

He, who did not want to be named in the report, said: "Banks will also sign a contract with the manufacturer that if it fails to meet its obligations to the facility and repay the installments, the area and the arrays they receive from the Ministry of Industry will be given to the bank granting the facility." . This contract is called a succession contract. In this case, the bank becomes the owner of the factory and must continue to produce, which the banks are usually unable to do, and the manufacturing plant goes bankrupt.

The banking expert added: "But if the facilities received by the manufacturer are outside the scope of industrial estates, the recipient must, in addition to mortgaging the factory, must also introduce a guarantor to the bank who owns the property." The guarantor undertakes to transfer the property to the bank in the event of non-repayment of the installments of the facilities along with the delayed fines, equivalent to the debt of the borrower.

He added: "However, due to the existence of multiple laws, judges can both comply with the Exemption from Religion Act and the Compound Profit Prohibition Act, as well as with laws that allow banks to seize bank guarantees."

The legal expert noted that under the Exemption Law, if a mortgagor owns only one residential property in which he resides, the creditor (bank) is not allowed to claim it as collateral; But at the same time, according to the Civil Code and due to the mistakes of the legislature, we have articles in the Civil Code that the creditor (bank) can claim the same housing unit and the judge can agree to this request of the bank.