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Larijani: 20% of Iran’s problems from sanctions, 80% from Ahmadi-nejad

The speaker was rebutting US State Department spokeswoman Victoria Nuland’s words regarding the rial’s plunge.

She said, “From our perspective, increasingly successful international pressure is affecting the Iranian economy. It’s under incredible strain. Iran is increasingly cut off from the global financial system. Significant amounts of Iranian oil are also coming off the market. Firms all over the world are refusing to do business with Iranian companies.”

Larijani, however, said the country has more important problems than international sanctions.  And he ticked off a list of issues decided by President Ahmadi-nejad—decisions Larijani said were wrong.

“The liquidity in the country has rapidly increased by 83 percent in the last seven years,” Larijani said, referring to Ahmadi-nejad’s time in office. “This increase means that no investments are possible, production has slowed down, inflation has started to grow. As a result of this, wrong decisions are being made, and wrong steps are being taken.”

Larijani noted that bank debt to Iran’s Central Bank has tripled, and the debt cannot be paid, adding that, as a result of this, financial indiscipline reigns.

“How is that connected with sanctions?” Larijani asked. “It doesn’t have anything to do with international sanctions.”

Larijani also said that the authorities made a mistake by investing foreign currency into the Maskan-e Mehr house-building program, one of Ahmadi-nejad’s pet projects.  “While housing is an important factor, if there is no balance, economic problems arise,” Larijani said.

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