Iranian banks raise long-term interest rates to 20 percent

Business Materials 29 January 2012 12:07 (UTC +04:00)

Azerbaijan, Baku, Jan. 29 / Trend F.Milad/

Iranian state-run and private banks in a joint statement set the interest rates between 7 percent and 20 percent for short-term and long-term deposits, respectively, from the current figures of 6 percent and 15 percent, the Mehr news agency reported.

The move came as the rial, under pressure after new U.S. sanctions targeting Iran's Central Bank, shed about 50 percent of its value relative to the dollar in the span of a month.

Economy minister Shamseddin Hosseini has announced that President Mahmoud Ahmadinejad has agreed with the approval of the Money and Credit Council to increase interest rates on bank deposits to up to 21 percent.