Shafaq News / The Iraqi Central Bank announced, on Tuesday, that it will reduce loan interest, to support the economic and productive sectors.

A statement received by Shafaq News agency, the bank said that with the continuous economic crisis caused by Covid-19 pandemic and the drop in oil revenues, the Central Bank of Iraq decided to enhance the liquidity of the projects, that were initially funded from an initiative (One trillion), at an amount of 5 million dinars, so that anyone can start a project with the same guarantees, in exchange for administrative commissions and without interest.

The statement added that the central bank directed banks to reduce interest from 4.8% to 3.5% for borrowers within 1-20 million dinars, and reduce the bank loan interest from 21 million to 1 billion dinar, after it was 6.3% to become 4%.

The central bank also directed banks to take into consideration the projects related to the tourism, hotels and restaurants sectors, as by the statement.