IMF sees steady growth for Iran but economic reforms needed

The International Monterrey Fund is predicting a steady growth in Iran's economy but cautions it still faces a number of challenges, including the need to reduce government debt and red tape.

The IMF says growth is expected to top 4 percent in the coming fiscal year while other Mideast oil exporters are facing close to zero percent growth. Iran's economy has seen a boost since international sanctions were lifted after the 2015 nuclear deal.

IMF's report on Monday urged Iran to remove obstacles to private sector development and reduce social barriers and pay gaps for Iran's educated women.

The IMF says banks also need "urgent restructuring and recapitalization" and is recommending that Iran allocate a share of its oil revenue to cover the costs of banking reforms.