Consolidated Banking-System Balance Sheet, Year-End Stock Levels (FY1963/64-1969/70)_

Event_Log

1. 011962Third Development Plan launchedAssociation

   Iran's Plan Organization launches the Third Development Plan (September 1962-March 1968), the country's first comprehensive economic development plan, emphasizing heavy industry and supporting infrastructure while expanding private and public-sector banking to encourage investment in new industries.

   Why this link: The consolidated banking system's net foreign assets peaked at 27.5bn rials in FY1964/65 then fell continuously to 9.4bn by FY1969/70, while claims on the public sector grew roughly 5.5-fold (11.8bn to 65.5bn) and claims on the private sector grew roughly 2.7-fold (72.9bn to 197.9bn) over the same window. This is consistent with the Third and Fourth Development Plans' investment-heavy, import-intensive industrialization drive, financed substantially through expanding bank credit, steadily drawing down the banking system's foreign-exchange reserves as import demand outpaced foreign-exchange earnings.

   Caveat: The source table itself does not explain the reserve decline's causes -- this is a plausible inference from the shape of the data (credit quadrupling while reserves drain) combined with general Development-Plan-era economic history, not a claim directly stated in the primary document. The 1960-62 IMF stand-by/austerity program had already stabilized reserves briefly before this window begins; this chart shows that stabilization did not hold once Plan-financed credit expansion resumed after 1962.

   Lag: gradual over 5+ yearsSource: Wikipedia -- Economic History of Iran (cross-checked against Encyclopaedia Iranica, Barnama-rizi)