Baku, Azerbaijan, Dec. 22
By Khalid Kazimov – Trend:
A senior Iranian MP has said that Iranian banks are likely to cut the interest rates on banking loans over the coming weeks.
The head of a parliamentary commission on economy, Mohammadreza Pourebrahimi, said that a group of Iranian banks still refrain from implementing the approved interest rates, Mehr news agency reported.
Criticizing those banks who failed to reduce interest rates on loans after cutting the interest rates on deposits over the past months, he said the decision on cutting the interest rates meant to reduce the costs of financing projects in the country.
The Central Bank of Iran (CBI) issued its latest directive on Aug. 23 setting a deadline for banks to reduce their deposit interest rates to 15 percent.
Through the directive the CBI obliged the country’s banks and credit institutions to implement the directive as of September 2.
Under the directive, banks and credit institutions are obligated to adhere to long- and short-term deposit rates set respectively at 15 percent and 10 percent.
Government officials say the Money and Credit Council, the decision-making body of CBI, is eyeing further cuts to loan rates that currently stand at 18 percent.