Iran's Central Bank not to change profit rates

Business Materials 15 September 2012 12:20

Azerbaijan, Baku, Sep.15/ Trend F.Milad/

The Iranian banking sector has no plans to change the current profit rates, the Central Bank governor Mahmoud Bahmani said, ISNA reported.

For the time being, the profit rates are not likely to be changed till the inflation rate is lowered, Mahmoud Bahmani noted.

Meanwhile, the director general of the Iranian presidential office's department for macro economy planning, Alaeddin Azvaji, has said that reducing profit rates of bank deposits led to the fall in the number of depositors and so led to the shortage of liquidity for supporting the domestic production sector.

In May, Iran Finance and Economic Affairs Minister Shamseddin Hosseini said that paying 21 percent profit to bank deposits is costly, but it is inevitable because it has been approved by the Money and Credit Council.

Many of the domestic banks have offered up to 98 percent of the assets in the form of financial facilities, of which around 70 percent has been spent in housing, industry and agriculture sector, he added, the Mehr news agency reported.

In February, the Central Bank increased the maximum profit rate for bank deposits and bonds from 17 percent to 21 percent.