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Most Iranian State Entities Barred From Receiving Bank Interests

Most State Entities Barred From Receiving Bank Interests Most State Entities Barred From Receiving Bank Interests

The Central Bank of Iran has notified rules concerning interest paid to state bodies on their bank deposits. 
According to the IBENA report on Sunday, most state entities cannot receive any interest on their bank accounts, including current account, short-term and long-term accounts held by government-run or private banks. 
The measure, however, clarifies that banks, state-owned Iran Insurance Company and Securities and Exchange Organization, as well as funds, universities, research centers and institutions under the mandate of the Leader and other entities specified by the rules have been exempted. 
The ruling prohibiting state bodies from interest payments came after the administration of President Hassan Rouhani decided to transfer the accounts of all state bodies from agent banks to the Central Bank of Iran. 
The decision was announced on August 2016, in line with its policies to promote transparency and avoid dodgy practices related to the expenditure of public-sector organizations. 
 

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