In an unprecedented move, Iran has declared Ayandeh Bank, one of its largest private financial institutions, bankrupt. The announcement, made on Saturday, marks a significant development in a country already grappling with severe international sanctions. Established in 2012, Ayandeh Bank boasted an extensive network of 270 branches nationwide, including 150 in Tehran alone. However, the bank had been struggling with mounting debts, with accumulated losses reaching approximately $5.2 billion and liabilities of around $2.9 billion, as reported by the ISNA news agency. The state-owned Melli Bank has now absorbed Ayandeh Bank’s assets following a directive from the Central Bank of Iran, which has assured depositors of the safety of their savings. ‘The transfer from Ayandeh Bank to Melli Bank is now complete,’ stated Melli Bank director Abolfazl Najarzadeh on state television. The bankruptcy was attributed to ‘bad debts,’ with over 90% of the bank’s funds reportedly allocated to related parties or internal projects that failed to generate returns, according to Hamidreza Ghaniabadi, an official at the Central Bank of Iran. Ayandeh Bank had been involved in ambitious ventures such as the Iran Mall shopping complex in Tehran, which features an ice rink and cinemas. The collapse of Ayandeh Bank is not an isolated incident, as five other Iranian banks—Sarmayeh, Day, Sepah, Iran Zamin, and Melal—are also facing financial difficulties. This development comes amid renewed international sanctions on Iran, reimposed by the United Nations in September after the breakdown of nuclear talks earlier this year. The sanctions, a ‘snapback’ of measures previously frozen under the 2015 nuclear deal, have further strained Iran’s economy, which has been under pressure since the U.S. withdrew from the agreement in 2018.