Credit facilities' rates to hinge on Iran's economy
Azerbaijan, Baku, Feb. 4/ Trend M. Moezzi/
Interest rate on the credit facilities that Iran offers to manufacturing and production sectors will be set according to economic conditions, Iranian Labour News Agency (ILNA) quotes an official as saying.
A higher interest rate on credit facilities is suitable for the current conditions and will change depending on the inflation rate, as well as the country's economic status, Mahmoud Bahmani, the head of the Central Bank of Iran, said.
If inflation rate decreases, then incentive to deposit is positive, but things will be different if inflation rises. No policy package has been announced for the coming year (Iran's solar year ends on March 21) as decisions will be made in response to Iran's situation, the inflation rate and its economic effects, Mr. Bahmani said.
Credit facilities' interest rates for transaction contracts are 12 percent for under 2-year repayments and 15 percent for above 2-year repayments. Partnership contracts have a 21 percent interest rate.