The high interest rate currently offered by the commercial banks will in the long-term have a negative impact on the economic activities in the country, Hassan Taei, the deputy minister of cooperatives, labor and social welfare, said on Wednesday. “A proper monetary policy as well as productive cooperation between the banks and manufacturers will ultimately lead to the improvement of business environment in the country,” he was quoted by IRNA as saying. Describing the current banking interest rates as “unconventional”, he said, “The interest rates offered on loans outpace the business profits, making many business activities financially unviable.” He also said that if the trend continues like this, many businesses, which are short of resources, are likely to lose competitiveness in the market. Depending on the banks and the type of loan, the interest rate offered by the banks on the loans varies from 21% to 30%.
