8759
CBI’s Latest Directive on Deposit Interest Rates
Economy, Business And Markets

CBI’s Latest Directive on Deposit Interest Rates

Interest on sight deposits will be calculated via a new method, a newly issued directive by the Central Bank of Iran states.
According to the directive, interest on sight deposits will be based on the bearers minimum daily account balance during the month and will be calculated at the end of the month. The rate for such deposits is 10 percent annually.
Banks and credit institutions have to tailor their existing products so that their effective interest rate remains within the central bank’s set rate. Any new financial product has to be vetted by the CBI.
Previously it was announced that sight deposits would get interest be derived from minimum account balance during the month, with interest being paid at the end of the month.
Central bank officials sat with bank CEO’s on Dec. 21 in a bid to get them on board on lowering interest rates. This was the CBI’s second attempt to get bank’s inline on the decision.
The central bank wants to lower interest rates in line with the declining inflation, which is expected to fall below 20 percent by the year’s end from last fiscal year’s 34.7 percent.
The annual rate for investment deposits, no amount from which is withdrawn for at least one year, was set at maximum 22 percent on the Dec. 21 meeting. If inflation falls below 20 percent, as is the administration’s target, that would mean a two percent real interest on the deposits.  Currently banks do not offer long term deposit contracts due to the country’s uncertain economic outlook.

Short URL : http://goo.gl/V5xTRA

You can also read ...

Economic War on Iran Is War on Eurasia Integration
Hysteria reigned supreme after the first round of US sanctions...
German Rail Operator, Deutsche Telekom End Iran Projects
German rail operator Deutsche Bahn and Deutsche Telekom are...
Emirati Paper: Baghdad Expected to Maintain Strong Economic Ties With Tehran
Iraq’s ties with Iran are likely to grow stronger as a result...
 New ATR Planes Join Iran Air Fleet
The ATR 72-600 planes recently delivered to Iran Air have...
Decline in Forex  Rates Expected
While the foreign exchange rates are still considered bullish...
NZ Exporters Wary of Rising  US-Iran Trade Tensions
New Zealand exporters are looking to worsening US-Iran...
Australian Teen Hacked Apple’s Computer Network
An Australian teenager has pleaded guilty to hacking into the...
Non-Oil Trade Volume With Italy Up 40%
Iran traded 371,876 tons of non-oil commodities worth $508.04...

Trending

Googleplus