LONDON (IRNA) -- Iran's liabilities with western banks rose by over a billion dollars to a record $25.6 billion between March and June last year, according to the latest figures from the Bank of International Settlement (BIS).

During the second quarter of 2005, Iran overtook Saudi Arabia, whose liabilities fell by nearly $2 to $25.4 billion, to become the highest outside the Basle-based bank's reporting area, including the Middle East.

The rise in liabilities was accompanied by the country's deposits with western bank remaining fairly stable at over $23 billion, leaving Iran with a deficit of more than $1 billion.

Iran's liabilities have now risen by nearly pounds 11 billion since the end of December 2003, the biggest rise among countries outside BIS's reporting area.

This compares with an increase of nearly $6 billion assets at a time when Iran had a surplus with western banks in excess of $3 billion.

By maturity, over half of the $24.7 billion worth of foreign consolidated claims are up to one year. Over $9.5 billion have a maturity of over two years.

The liabilities remained largely spread across European banks, totally $17.5 billion. The highest are with French and German institutions totaling $5.7 and $4.3 billion respectively.

Iran's assets with western banks previously fluctuated between $13 and $16 billion after almost doubling in value in 2000 following the steep recovery in oil prices before rates started to hit record prices from 2003.

During the same period, liabilities have often mirrored increases in deposits, varying from $6 billion to the current peak of more than $25 billion.