Iran Declares Ayandeh Bank Bankrupt Amid Renewed Sanctions

Iran has declared Ayandeh Bank, one of its largest private banks, bankrupt due to overwhelming debt and financial mismanagement, with its assets absorbed by the state-owned Melli Bank. Founded in 2012, Ayandeh Bank operated 270 branches nationwide but accumulated losses of approximately $5.2 billion and debts of about $2.9 billion, largely tied to internal loans and projects that were not repaid. The Central Bank of Iran facilitated the transfer of assets and assured depositors that their savings are secure, while police managed long queues of concerned customers at bank branches. This financial collapse occurs amid renewed international sanctions on Iran, following the United Nations' decision to reimpose sanctions after stalled nuclear deal talks and attacks on Iranian nuclear facilities by Israeli and U.S. forces. These sanctions represent a "snapback" of measures originally frozen in 2015 under the nuclear deal brokered by former President Barack Obama, which had been further challenged by President Donald Trump's earlier withdrawal from the agreement. The bankruptcy highlights the broader economic challenges Iran faces due to sanctions and internal financial issues within its banking sector.