Economist: Inflation controls the interest rate banks impose on borrowers
02:27 - 24/10/2018
Special - Mawazine News
Economic expert Salam Smisem stressed Wednesday that the benefits imposed by banks on citizens are to preserve their funds, pointing out that they are linked to inflation in the country.
"Interest is a compensation for inflation, it increases as inflation increases in the country and
banks want to ensure that their money is maintained so they impose high interest rates," Smisem said in an interview with Mawazine News.
She added that "interest rates set by the Central Bank in cooperation with the bank," pointing out that
"the benefits will work to compensate for inflation and the difference of the value of the currency after years of granting interest."
The Iraqi government and private banks grant loans from time to time, while taking on these loans interest rates high for years. End 29 / r