Baku, Azerbaijan, Feb. 7
By Khalid Kazimov – Trend:
Governor of Central Bank of Iran Valiollah Seif says the country’s banking system operates at loss.
Seif has said that Iranian bankers are not capable of reducing interest rates as the country’s banking system operates at loss, ISNA news agency reported.
He described “lack of balance in income and expenditure” as well as “lack of balance in possessions and debts” as the two main factors of “ongoing crisis” in the Iranian banking system.
Iran’s Money and Credit Council (MCC) back in June 2016 cut down banking interest rates on loans made to borrowers from 22 percent to 18 percent.
The MCC also approved an earlier decision by the country’s bankers to lower the deposit interest rate from 18 percent to 15 percent.
The decision to reduce interest rates was carried out with an aim to give a boost to the country’s depressed economy, followed by the administration’s triumph in lowering inflation rate in the country.
However, most of Iranian banks have, so far, failed to cut the interest rates.