Economy Ministry Says to Promote Usury-Free Loans

Economy Minister Ehsan Khandouzi says the government wants to expand the role of Qarz al-Hasanah (usury-free) financial institutions in providing microloans. 
"Qarz al-Hasanah loans have the potential to address the people’s demand for small loans. We as policymakers are committed to pave the way for its expansion and take measures to remove the hurdles," Tasnim News Agency quoted him as saying. He did not elaborate on the hurdles. 
Khandouzi said that the government has started implementing measures to strengthen such lenders. "Earlier this year, two qarz al-hasanah banks were allowed to double their capital. The Money and Credit Council (MCC) has approved measures to reorganize qarz al-hasanah funding."