Leasing Firms Seek Rate Revision

The National Association of Iranian Leasing Companies has again called on the Central Bank of Iran to revise its current policy regarding the interest rate of leasing contracts. At present, leasing firms are permitted to charge an interest rate of 21%, close to the lending rate of the banking system. “This is while the final cost of leasing contracts ranges between 25 -29%,” Mohammad Hadi Moqei, secretary-general of the association, said in a letter to Ali Akbar Komijani, CBI’s vice governor. People show no interest in using leasing firms’ services due to the infeasibility of their contracts, Moqei added. The CBI requires leasing companies to form a syndicate to represent the industry, as a prerequisite for addressing their issues. The association started operation in March 2016.