Measures to Move Iran’s Economy
* In its latest instruction regarding the interest rates on deposits and aimed at supporting production and employment as well as putting an end to the unconstructive competition among banks to attract funds, the CBI urged all banks and credit institutions to set 15% and 10% as the annual interest rate and short term rate, respectively, starting from September 2nd; the certain rate will be calculated at the end of the fiscal year. In addition, the interbank rate climbed down from 21% to 18%. Furthermore, contracts struck with previously set rates will not be renewed at old rates at all. According to this instruction, fixed income funds will also have to pay 15% return. Some experts believe that the guaranteed implementation of this matter will call for the full support and active intervention of the CBI in the interbank market along with the lowering of its fine rate of 34% to become in line with that of the interbank market.