Azerbaijan, Baku, Feb. 7/ Trend M. Moezzi
Interest rates will increase to 20 per cent for those water and hydroelectric projects' participation bonds already sold, the Islamic Republic news agency (IRNA) reported.
The move was requested by the Iran Water & Power Resources Development Company (IWPCO) and approved by the Central Bank of Iran (CBI), said Mohsen Tarztalab, the company's planning and supervising deputy. The new higher rate applies to all participation bonds that haven't matured. There will be another offering worth 10 trillion rials (about $815 million) by the IWPCO starting February 20.
The higher interest rates are part of the government's effort to make investing in government projects more attractive. The oil ministry's offering of bonds to the public was successful earlier this week.
Iran is dealing with loose liquidity as the public has rushed to buy foreign currency and gold coins in response to worries about the country's economy and international sanctions.