Economy, Business And Markets

Lenders Urged to Support Agriculture

Lenders Urged to Support AgricultureLenders Urged to Support Agriculture

The Central Bank of Iran urged all credit institutions and commercial banks in a new decree to allocate at least a quarter of their total resources to the agricultural sector, natural resources and related industries. Lenders are allowed to set interest rates of such credit loans preferentially, ISNA reported on Saturday. However, specialized banks including Bank of Industry and Mine and Bank Maskan are exempt from the decree. According to the law, if the lenders fail to adhere to the commitment, the CBI will raise their reserve requirement ratio as punishment. To help remove barriers against competitive production and improve financial system efficiency, the CBI called on CEOs of banks and institutions to strictly supervise over the law’s implementation.