Abolhassani: Bank Interest Rates Should not be Changed in Iran

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Written By Farid Shojaei

Abolhassani: Bank Interest Rates Should not be Changed in Iran

Ali Asghar Abolhassani, deputy director of Central Bank of Iran, says Iranian banks should keep their interest rates unchanged. In recent months, there were numerous disputes between Iranian government and local economists over bank interest rates.

“According to the latest agreements between the Iranian Money and Credit Council and Central Bank of Iran (CBI), bank interest rates should not be changed in Iran until the end of 2013.” Ali Asghar Abolhassani said on Monday.

He went on to describe the reasons for this decision. “Recently, we have held several sessions with local economists with regard to current inflation rate in Iran. Base on the feedbacks and comments that we received from economists, changing bank interest rates will directly affect inflation rate in country. So, we have decided to keep the interest rates unchanged until the further notice.” Ali Asghar Abolhassani added.

Ali Asghar Abolhassani also believes that taking similar measures will help Islamic Republic to establish an ongoing and stable economy. “Iran’s local businessmen, traders, banks and financial institutions can take better decisions in these conditions.”

According to local media reports, CBI is reviewing allocating low-interest loans to local corporations base on Islamic guidelines. “Central Bank of Iran is still studying the possibility of this plan. According to fifth national development plan, CBI can set extra budget for low-interest loans, but due to current economic problems in country, we have not yet finalized this project.”