Financial Times FT.com

Bank governor plans to eliminate loan interest

By Najmeh Bozorgmehrin Tehran

Published: September 5 2007 03:00 | Last updated: September 5 2007 03:00

Iran's new central bank governor, appointed on Tuesday, says he has a plan to eliminate interest rates on loans, in order to encourage "real and genuine" banking services - a move that left bankers fearful about greater government interference.

Tahmasb Mazaheri, a former finance minister seen as close to Iran's supreme leader, Ayatollah Ali Khamenei, promised to bring banking practices into line with laws against usury.

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