Baku, Azerbaijan, Jan. 15
By Khalid Kazimov – Trend:
The decision on the interest rate cuts has inflicted damage on Iran’s insurance industry, an insurance official said.
Majid Mashalchi, the head of privately owned Kosar insurance firm, has said that the implementation of the decision on interest rates cut has inflicted a damage of 60 percent on the insurance industry, Mehr news agency reported.
However, the recession in housing market had a key role in the loss, as well, he added.
The official did not provide further information on the damage that insurance companies of Iran suffered due to the interest rate cuts.
The Central Bank of Iran (CBI) issued its directive on Aug. 23 setting a deadline for banks to reduce their deposit interest rates to 15 percent.
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 of loan rates that currently stand at 18 percent.