Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Iranian Rial


VIZIOIRAQI
 Share

Recommended Posts

 to reconstruct Mosul: Minister

Tehran, July 16, IRNA – Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh said Iran is ready to expand relations with Iraq, especially in reconstruction of the war-stricken city of Mosul.

 
82600193-71745959.jpg

Speaking in the ceremony of signing cooperation documents with Ministry of Industry and Minerals of Iraq in Tehran on Sunday, Nematzadeh said Iran has a good experience in creating industrial towns and is ready to construct them in Iraq and provide equipment in places where the Iraqi government intends.

Nematzadeh added that Iraq is in dire need of reconstruction and development, especially in engineering and construction and Iran is ready to help Iraq in housing, road building, water and power provision, sea harbors, public welfare centers, etc.

“I’m sure that Iraq is determined to reconstruct the war-torn cities, like Mosul, and we are willingly ready to help and Iraq can count on Iran to develop economic activities.”

9417**1771

  • Upvote 1
Link to comment
Share on other sites

The US administration is expected to again certify Iran's compliance with the nuclear deal, possibly as early as Monday, even as it continues to review the broader US policy regarding the Islamic Republic.

"The [US President Donald] Trump administration is currently conducting a comprehensive review of our Iran policy," a US State Department official told Al-Monitor in a recent talk.

"Once we have finalized our conclusions, we will meet the challenges Iran poses with clarity and conviction. The Trump administration has made clear that at least until this review is completed, we will adhere to the JCPOA [Joint Comprehensive Plan of Action] and will ensure that Iran is held strictly accountable to its requirements."

The US State Department last certified Iran's compliance with the deal on April 18. A new certification, which keeps the US Congress from initiating its own review of whether to reimpose nuclear-related sanctions, has to be made every 90 days.

The Weekly Standard reported on Thursday that the second certification under Trump was forthcoming and that the White House had started calling congressional offices to alert them about the decision. The conservative magazine said the Trump administration expects to finalize its Iran policy review by the end of summer.

  Differing Views

It also said US Secretary of State Rex Tillerson and US Secretary of Defense James Mattis have argued for certifying Iran's compliance, while White House strategy chief Steve Bannon has argued for exiting the deal.

Ahead of the July deadline, four Republican senators, namely Tom Cotton, Ted Cruz, David Perdue and Marco Rubio, wrote to Tillerson last week to urge him not to certify Iran's compliance. They cited alleged violations of JCPOA-imposed limits on heavy water stocks, among other things, as evidence that Iran has "consistently violated" the terms of the deal.

Washington's European allies have pressed the United States to stick with the landmark nuclear deal, which was reached two years ago in Vienna after years of negotiations.

"The JCPOA is not perfect, but it is much, much better than the other options," a senior European official said, stressing that he and his colleagues have been telling the same to the Trump administration. "The JCPOA is a reasonable way to address the [nuclear] issues … Let's implement the JCPOA in a robust manner."

"The nuclear deal doesn't belong to one country; it belongs to the international community," EU foreign policy chief, Federica Mogherini, said in a news conference with Russian Foreign Minister Sergey Lavrov in Brussels last Tuesday. "We have the responsibility to make sure that this continues to be implemented."

A group of 38 retired US generals and admirals, meanwhile, wrote an open letter to Trump last Wednesday expressing their strong support for the nuclear deal.  The retired officers applauded the parties' compliance with the landmark nuclear deal and urged the Trump administration to pursue diplomatic engagement with Iran as a means of de-escalating tensions.

"We urge your administration to recognize the national security benefits of the nuclear agreement and appropriately weigh the risks to our troops of escalating tensions with Iran," they wrote.

The certification debate comes as Iranian Foreign Minister Mohammad Javad Zarif is in New York for meetings at the United Nations. It is unclear if Zarif would have any encounters with US diplomats while he is in the United States.

Asked if Tillerson had spoken with Zarif, state department spokeswoman, Heather Nauert, said she did not think so.

"I do not believe that he has," Nauert told journalists at the State Department on Thursday. "We certainly have various diplomatic channels, lines of communications that can be used" if the US needs to get a message across to Iran.

"No meetings planned," Zarif told Al-Monitor by email on Thursday.  

 

Link to comment
Share on other sites

Rasheed Bank, the second largest bank of Iraq, has requested to open a branch in Iran, Mohammed Shia al-Sudani, Iraq’s acting minister of industry and minerals, said. Noting that there are five active branches of Iranian banks in Iraq, the Iraqi official hoped that the Central Bank of Iran will approve Rasheed’s request, Shata.ir quoted him as saying during his Sunday meeting with Iran’s Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh. Bank Melli Iran has three branches in Baghdad, Najaf and Basra. Parsian Bank also has a branch in Baghdad. In May, Iran’s Tourism Bank also opened an office in Najaf. CBI had named Iraqi Islamic Cooperation Investment Bank as one of the five licensed banks in Iran. Iran was Iraq’s third biggest trading partner in 2016.

Link to comment
Share on other sites

roundtable meeting was held at Tehran Chamber of Commerce, Industries, Mines and Agriculture to discuss bank interest rates and their potential consequences, as well as the return of double-digit inflation rates, review statistics and provide solutions.

In the meeting attended by executives from various sections of the money and capital markets, the director of new financial instruments at Iran Fara Bourse (over-the-counter exchange) began by analyzing the factors sustaining high bank interest rates in Iran and put forth suggestions to overcome their consequences.

Alireza Tavakkoli added that the Iranian financial market was worth 12.588 quadrillion rials ($335.6 billion) two years ago while 66% of its value belonged to the credit market i.e. bank loans and debt bonds, with the rest going to the stock market consisting of exchange and over-the-counter exchange trading.

In that year, bank loans dominated the credit market with a 96% share.

In the previous fiscal year that ended in March, the financial market's worth reached 14.589 quadrillion rials ($389 billion) but the share of the stock market shrunk to 28%. While bank loans' share of the credit market decreased by 3%, they still reigned over it with a 93% share.

During the first three months of the current fiscal year (March 21-June 21), "the share of credit market from the overall financial market reached 73% with a miniscule increase while the share of the stock market decreased by 1% to stand at 27%," the official said.

Tavakkoli noted that the volume of bank loans experienced a 25% hike during the previous fiscal year and reached 9.866 quadrillion rials ($263.1 billion).

"In the same period, the share of debt bonds also increased by 94% and reached 694 trillion rials ($17.3 billion) from the previous 358 trillion rials ($9.5 billion), but in spite of this increase, it still holds a minor 7% share of the credit market," he said.

The rise in the share of debt bonds is due to the government policy of issuing bonds to repay its debt, a policy some fear will have an adverse affect on bank interest rates.

Referring to the rise in the share of debt bonds as "a serious threat for the debt market" because the rates of bonds are not transparent and lack supervision, Tavakkoli said they are being traded at the rates of between 28-60%.

To counter their negative effects, he proposes the formation of a secondary market.

As for ways of reducing bank interest rates, he stressed that as the marketer of government bonds, the Central Bank of Iran must play an effective role while managing the dire situation of uncertified credit institutions.

He also pointed to rating of banks, public disclosure of ratings, directing people's small deposits toward debt markets and establishing a foreign exchange bourse market with the aim of attracting foreign investors as other solutions.

Abbas Argon, a member of TCCIM's board of representatives, echoed Tavakkoli regarding illegal credit institutions, stressing that an effective control over them will help reduce the interest rates, as "they currently hold more than 1 quadrillion rials ($26.6 billion) worth of people's liquidity".

Bank Pasargad board member, Mostafa Beheshtiroo, said the lenders are not to blame for the problems of banking sector, noting that regulations related to labor, taxes and currency rates are "the root of economic problems".

Providing a counter argument, TCCIM's board of representatives member, Seyyed Hossein Salimi, dismissed the idea that the banks are blameless, noting that their speculative activities in the past, such as entering the housing market, coupled with establishing too many branches, have created many problems.

Return of Double-Digit Inflation

The second part of the meeting revolved around inflation concerns, as the CBI announced late June that the average goods and services Consumer Price Index for urban areas in the 12 months ending June 21, which marks the end of the Iranian month of Khordad, increased by 10.2% compared with last year's corresponding period.

"The change effectively ended months of single-digits average CPI growth considered by many as one of the biggest achievements of President Hassan Rouhani's economic team while the same month of last year had registered the lowest point-to-point inflation rate," TCCIM's deputy for economic analyses, Maryam Khazaei, said.

Reviewing the conditions of inflation rate, she also referred to the latest International Monetary Fund report indicating that Iran will have to again grapple with a double-digit inflation rate in 2017.

Noting that the volume of non-sight deposits jumped significantly last year, Khazaei criticized CBI for not publishing monetary variables on time and called on it to disclose them "without current limitations, completely and on time".

Link to comment
Share on other sites

saeed%20Jalili.jpg?itok=kl8nlhvx
Domestic Economy Desk

The JCPOA is one of the most successful diplomatic programs in the modern world, senior economist, Mohammad Mehdi Behkish, told Financial Tribune.

Behkish is a leading free trade advocate in Iran and secretary-general of International Chamber of Commerce’s Iranian Committee.

Two years have passed since Tehran signed a landmark deal with the US, Britain, France, Russia, China and Germany on July 14, 2015, to resolve a longstanding dispute over its nuclear program. All nuclear sanctions were lifted in January 2016 when the pact, known by its official name Joint Comprehensive Plan of Action, was implemented. In exchange, Iran accepted to limit the scope of its nuclear program.

“The nuclear deal is also a significant achievement for Iran," he said. “It put an end to the progressive sanctions that limited Iran’s oil exports and financial transactions. Had the sanctions sustained, today we wouldn’t have been able to make any payments whatsoever, even through the unusual means that we used under the embargoes.”

The lifting of sanctions is a signature achievement of the administration of President Hassan Rouhani who took power in a landslide victory in 2013, built on the promise of opening up of the Iranian economy that was walled off from the outside world for years. On the back of this major achievement and many others, Rouhani was reelected in the May 19 vote.

The pact benefited Iran to a great extent. Nonetheless, these benefits came at a slower pace than expected, as Tehran still has to work hard to encourage major international banks, financial firms and companies to engage with the government and the businesses in Iran.

Despite the removal of nuclear-related sanctions, the United States maintains a set of other sanctions it has unilaterally imposed on Tehran.

Washington, which saw the rise of the hardline US President Donald Trump in November, has been imposing new sanctions on Iranian companies and individuals, while threatening to review JCPOA.

“What happened was that the negotiating parties discussed issues related to Iran’s nuclear program alone to avoid difficulties in negotiations,” Behkish said. “They kept the scope of the talks limited [to the nuclear program] to be able to make progress and perhaps they did the right thing. But the unsolved issues [with the US] have made it difficult for Iran to reap the benefits of the nuclear deal.”

There are many sectors in which Iran has been making progress in the past two years. Both production and export of oil, Iran’s main source of income, have almost been doubled and economic growth reached %12.5 in March 2016-17.

However, the country has been unable to finance many deals it has struck with international companies to expand its underdeveloped infrastructures in transportation, manufacturing and energy sectors.

Agreements worth tens of billions of dollars have been signed with international companies after the lifting of sanctions to build rails, roads and power plants, and supply equipment for industrial firms, among many other deals. However, the signatories of these deals have mostly failed to find financing solutions amid limitations that still exist on the part of many big financial institutions.

Large European banks have been refusing to deal with Iran, fearing potential US penalties that have cost them billions in fines when the sanctions were still in place. This comes amid ambiguities regarding the US political stance on Iran, which kept many businesses in limbo.

But this trend seems to be changing for the better, as the long-awaited Iran Petroleum Contract starts to attract major international players to Iran’s energy reserves.

France's Total signed a $5 billion deal with Tehran earlier this month to develop Phase 11 of Iran's South Pars, the world's largest gas field, marking the first major western energy investment in the Islamic Republic since the lifting of sanctions.

Behkish noted that the deal with Total was a turning point.

“It is a very serious contract. Total needs to finance this deal and it is not something small banks can handle,” he said.

The first stage of the South Pars development will cost around $2 billion. Total will be the operator with a 50.1% stake, alongside Chinese state-owned oil and gas company CNPC with 30%, and National Iranian Oil Company's subsidiary Petropars with 19.9%.

“This deal is a breakthrough,” he added, noting that it shows foreign companies and their governments are willing to take the risk of doing business with Iran.

Behlish predicted that the situation will start to improve for Iran as of the beginning of 2018.

“To take advantage of this, the government should focus on domestic economic reforms. It should adopt a coherent policy to fix inefficient structures, parallel to its international efforts,” he said.

Link to comment
Share on other sites

Agreements worth tens of billions of dollars have been signed with international companies after the lifting of sanctions to build rails, roads and power plants, and supply equipment for industrial firms, among many other deals. However, the signatories of these deals have mostly failed to find financing solutions amid limitations that still exist on the part of many big financial institutions.

 

tens of billions...hmmmm

Link to comment
Share on other sites

EasyHotel is a super budget hotel chain based in London. EasyHotel is a super budget hotel chain based in London. 

Budget chain easyHotel has announced plans to open branches in Iran, expecting a deal for 500 rooms. 

The London-based group says its operations will be managed by a franchisee in Iran where local staff will run the facilities but easyHotel will not risk direct capital investment.

The expansion plan is expected to include new purpose-built hotels and conversions of existing hotels or office buildings.

EasyHotel Chief Executive Guy Parsons expects most of its customers to be Iranians and the company is not targeting a large growth in travel from Europe or Britain.

Since the lifting of sanctions on Iran, hotel groups from several countries have been pushing to boost their portfolios in the country which is being billed as the most lucrative emerging hospitality development market.

228ae006-c478-4460-ac98-db35ed007571.jpg Iranian women look at the palace of King Darius of Achaemenid (522-486 BC) in the ancient Persian city of Persepolis near Shiraz in southern Iran on September 26, 2014. (Photo by AFP)

Europe’s largest hotel group Accor, UAE-based Rotana and Spain's Melia Hotels International have already moved into the country. Other chains from Germany, Greece, South Korea, Singapore and Turkey have negotiated possible expansion.

412dbcb6-e02e-4a28-b598-e34287da0a5f.jpg 5-star Melia hotel in the Iranian city of Salman Shah on the Caspian Sea

"There are a number of hotel companies that are looking to expand into Iran. We're looking to develop in the Middle East, and it made sense for us to take this opportunity," Parsons told Reuters.

"We're comfortable that now is the right time to go. But we're going to keep monitoring the situation and discussing it with the franchisee and developer in Iran," the news agency quoted him as saying.

Iran has an ambitious plan to attract 20 million tourists by 2025 and generate $30 billion of revenues a year.

638e3a26-c245-43cc-b4d8-555cadb40a3f.jpg Barin Hotel in Shemshak Ski Resort outside Tehran

The country is working to diversify its foreign exchange earnings away from petrodollars as the liability of the oil sector is beginning to dawn on the nation following years of sanctions and crude market volatility.

Visitor numbers have already boomed in recent years, rising from 2.2 million annually in 2009 to 5.2 million in 2015.

de6800f7-3968-4571-a57a-d413e3af8ef4.jpg Arasbaran (Qaradag) mountains in northwestern Iran

Deputy Economy Minister Mohammad Khazaei has said Iran was offering a tax break of 13 years to international hoteliers.

"All economic activities related to... tourism will enjoy 100 percent tax holidays between five to 13 years depending on the region," he was quoted as saying in October 2016.

Iran has currently 1,100 hotels of which only 130 are in the four- or five-star category. Officials say the number of four- and five-star hotels must rise to 400 by 2025.

Link to comment
Share on other sites

A railway bridge at Do Ab in Mazanderan Province on the Gorgan-Bandar Torkaman line, 2007. A railway bridge at Do Ab in Mazanderan Province on the Gorgan-Bandar Torkaman line, 2007.

Iran and Italy will sign a deal worth 1.2 billion euros next week to build a high-speed railway between the central cities of Arak and Qom. 

Renato Mazzoncini, CEO of Italy's state railway company Ferrovie dello Stato (FS), will visit Tehran on July 11 to finalize the construction of the 135-kilometer line.

It is the first stretch of a high-speed rail line which FS plans to build in Iran, with the other being a 320-km planned link between Tehran and Hamadan.  

The overall deal is worth 5 billion euros which Ferrovie initially signed under a framework agreement when former Italian Prime Minister Matteo Renzi visited Tehran with a delegation of business leaders last April.

FS will supply assistance to the Iranian railways for both high-speed and conventional rail lines, including a complete program for training personnel, the company said at the time.  

The group has also been connected with the planning and construction of a high-speed rail corridor between Tehran, Qom and Isfahan, and electrification of the rail link between Tehran and Tabriz on the way to the Caucasus and Turkey.

Iran and Italy have signed deals potentially worth billions in sectors including energy, railways and defense. Italy's export agency and state lender has pledged billions of euros in credit lines and guarantees.

2509c1b1-e451-4071-b9fa-8f0e7d93dc3f.jpg Iran's President Hassan Rouhani (R) and former Italian Prime Minister Matteo Renzi attend a ceremony to sign deals in Tehran, Iran, April 12, 2016. (Photo by Reuters)

Beside FS, oil major Eni, electricity and gas distributor Enel, oil contractor Saipem, steel firm Danieli, infrastructure firm Condotte d'Acqua, rail and road company Gavio, and airplane manufacturer Finmeccanica are the companies which have undertaken big ticket investment plans in Iran.

Italy's state-run lender Cassa Depositi e Prestiti has offered credit lines to companies building oil-and-gas and transport infrastructure, while export agency SACE has committed to guarantee those loans.

The agreements were reached when Renzi visited Iran with by a delegation of some 60 business leaders - three months after President Hassan Rouhani traveled to Italy.

Iran’s transport expansion includes aligning with the regional rail networks in the Persian Gulf and the subcontinent to Central Asia. The country has announced plans to invest $25 billion over the next 10 years in the modernization and expansion of its railway network.

The country plans to stretch out the nationwide railroad line to 25,000 kilometers by 2025 from under 15,000 kilometers now, with 7,500 km already under construction.

“The main objective in the rail transportation sector is to complete the entire network and shift some of the road transportation to rail, given the development of industries and mines in Iran,” Minister of Roads and Urban Development Abbas Akhoundi has said. 

Link to comment
Share on other sites

I am positive as well...

 

Iran says confident sanctions never return

Fri Jul 7, 2017 10:39AM
  1. Home
  2. Iran
  3. Economy
Mohammad Khazaei, the deputy finance minister for investment affairs, says a snapback mechanism that envisaged the return of sanctions against Iran is no longer existent. Mohammad Khazaei, the deputy finance minister for investment affairs, says a snapback mechanism that envisaged the return of sanctions against Iran is no longer existent.

Iran says it is confident that a US-led regime of sanctions that had been imposed against it as a result of disputes over its nuclear energy program “will never return”. 

Mohammad Khazaei, the deputy finance minister for investment affairs, told a forum on Iran’s investment opportunities in Vienna that a snapback mechanism that could revive the sanctions against Iran “is no longer existent”.

Khazaei emphasized that Iran had entered a new era of economic cooperation with the world, stressing that the recent trend of investments in the country testified to that.

He added the Islamic Republic had already proven to be an appropriate place for investments, saying this was the reason why investors were already transferring their capitals from certain regional countries to Tehran as a result of recent diplomatic crises in the Persian Gulf. 

Khazaei further emphasized that the Iranian government had issued guarantees for a total of about $12 billion in foreign investments in 2016, stressing that the figure was the highest the country had ever seen.

He said the government of President Hassan Rouhani had already signed agreements with several countries to finance its infrastructure projects. Those countries, the official emphasized, included Austria, Denmark, Italy, Britain, Germany, China, South Korea and Japan.

Khazaei said those agreements would lead to major investments in the Islamic Republic in the near future.

Elsewhere in his remarks, the official emphasized that the petrochemical industry had a high importance in the Iranian economy, stressing that the government of President Rouhani was already planning to use investments in the petrochemical sector to spur growth in other sectors.  

 

I love "will statements"...

  • Upvote 2
Link to comment
Share on other sites

 

he first vice president said the government's success in stabilizing the economy hinges on plans to foster domestic production and absorb foreign investment.

"The government is striving to establish calm and stability in the economy, as stability in the economic environment is a key consideration for businesses," Es'haq Jahangiri also told an economic conference on Monday on Kish Island where he also inaugurated several construction, tourism and industrial projects.

"A sound path needs to be laid for addressing national problems and challenges. [Attracting] investment and bolstering production are perquisites," IRNA quoted him as saying.

Major sectors of Iran's economy came under strain over the years of international sanctions.

Some of those sanctions were eased under the 2015 nuclear deal with major powers, in return for temporary curbs on Tehran's nuclear work.

President Hassan Rouhani's reform plans, which are aimed at attracting foreign investment in the absence of sanctions, have faced resistance from his domestic opponents.

His conservative critics remain deeply skeptical about his insistence that the sanctions-free situation is an opportunity for economic revival that needs to be fully exploited.  

They fear his plans to engage in open trade with the western world could expose the Islamic Republic to the hostile policies of their governments.

Jahangiri reiterated the government's argument, stressing that for the Iranian economy to successfully weather the current downturn, it needs to forge "a good interaction with the world".

"The most important tool at the government's disposal is the policies of Economic Resistance. The government agrees that these policies could be helpful in handling the country's challenges," he said.

Economic Resistance is a set of principles outlined by the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei to promote domestic production and eliminate the economy's dependence on oil revenues.

The first vice president said there is a consensus among domestic economists and the other two branches of government over the need to help the Rouhani administration implement this economy policy, as instructed by the Leader of the Islamic Revolution.

***Super Challenge

Jahangiri described unemployment as a "very complicated … super challenge" confronting the economy and said, "We need to create conditions conducive to investment so it would lead to increased production and job creation."

Rouhani won reelection in a landslide in the May presidential vote, despite a fierce challenge from the conservative camp that targeted his first term's economic record. They accused him of failing to carry out his 2013 electoral pledge to revitalize the stagnant economy by tackling the scourge of unemployment, among other problems.

The president has responded by invoking the figures released by the Statistical Center of Iran, though the executive chief acknowledges that they fall far short of the number of jobs he vowed to generate.

An SCI report has put the unemployment rate in the last fiscal year (March 2016-17) at 12.4%, registering a 1.4% rise compared with a year earlier.

Link to comment
Share on other sites

Canada will provide $100 million in finance for a deal between Montreal-based multinational aerospace and transportation company, Bombardier Inc., and Iran’s Qeshm Free Zone Organization for purchasing 10 passenger planes, the FTZ’s chief executive, Hamidreza Momeni, has said.

The free zone is planning to launch a new airline called Fly Qeshm. 

“Our talks with Canada’s Bombardier are almost final,” he was quoted as saying by Iran’s Tinn News on Tuesday.

Momeni said the $100-million finance will cover 80% of the deal, which entails the supply of the 104-seat planes. 

“We are doing our best to receive these planes before the end of the current year (March 20, 2018),” he said.

He was quoted earlier as saying by Iran newspaper that the FTZ will receive permits to launch the new airline by July 29, adding that the airline will start operation as of February 11, 2018.

The organization’s talks with Bombardier to purchase passenger planes were publicized for the first time in April 2016, when Pierre Beaudoin, the executive chairman of Bombardier, led a delegation to Iran.

  • Upvote 1
Link to comment
Share on other sites

 

Iran regains Europe market

Tehran, July 19, IRNA - Iran's oil exports to European buyers reached their post-sanctions highs in May, official figures show noting that Iran's Europe oil exports have also neared oil exports to Asian countries.

 
82603554-71752511.jpg

Iran sold some 1.1 million barrels of oil to European countries last May, close to the amount it supplied before international sanctions were imposed on Iran over its nuclear program. The sanctions were lifted in January 2016 under a nuclear deal Iran signed with six world powers in 2015.

After sanctions were enforced, many European buyers of Iran's oil were forced to get their oil from other sources than Iran. Due to the sanctions, Iran's oil exports fell below 2 mb/d in March 2012. Greece totally cut its oil imports from Iran in April 2012. Spain slashed its purchase from Iran by 31% through December 2011 to January 2012 and instead raised its oil imports from Iraq and Nigeria.

Turkey, which used to buy one-third of its oil needs from Iran, cut its imports by 20%. Iran's oil supply to France and Italy was also halted completely.

After those sanctions were imposed, the Asian buyers were still continuing their cooperation with Iran, but Japan and South Korea cut their purchase and had to get their oil from other producers. Iran's share of oil market declined and Saudi Arabia grabbed Iran's share.

However, signing of Iran's nuclear agreement with world powers, dubbed the Joint Comprehensive Plan of Action (JCPOA), reversed the trend. Iran decided to get its share of oil market back and it focused on oil production hike. The International Atomic Energy Agency (IAEA) announced in 2016 that Iran's oil production had reached the pre-sanctions level of 3.56 mb/d, the figure Iran had last recorded in November 2011.

The long time Asian buyers once more decided to increase their oil purchase from Iran. China was still a big buyer of Iran's oil. European buyers once more turned back quietly to their traditional supplier. These European countries used to purchase 600,000 b/d of oil from Iran pre-sanctions.

According to a report released by UK-based global shipping consultancy VesselsValue, seaborne demand for Iranian crude has more than doubled after the lifting of the sanctions.

In the past five years, the greatest demand for Iran's crude came from China, Japan and South Korea, respectively, it said.

'New players in the mix following the removal of sanctions include France with 21 shipments in 2016, while Italy took 15 shipments, Greece fourteen and Spain thirteen shipments,' added VesselsValue.

According to figures released by Middle East Economic Survey (MEES), Iran exported on average 290,000 b/d of oil to European countries in 2016.

Iran's oil exports to Europe was valued at $4.57 billion in 2016, $812 million of which was achieved due to exports and oil price hike in December.

In that year, Iran was the 9th largest supplier of oil to Europe. In 2011 when the sanctions had not been toughened, Iran sold $23.5 billion of oil to Europe. At that time, oil prices were above $100 a barrel, while Iran faced no restrictions for the delivery of oil to these countries. In 2011, Iran was selling on average 598,000 b/d of oil to Europe.

In December 2016, Iran's oil sales to Europe topped 550,900 b/d, 50,000 b/d below the pre-sanctions level. In that month, Iran supplied 5.3% of Europe's oil needs and was the 6th biggest supplier to this continent.

Meanwhile, preliminary figures for 2017 are also indicative of the upward trend in oil exports to Europe. In 2016, Spain had purchased on average 49,900 b/d of oil from Iran, but it raised its imports from Iran to 91,000 b/d in January this year. Italian customers, whose average oil purchase from Iran was at 47,300 b/d in 2016, more than trebled their purchase in January to 151,000 b/d. Furthermore, Italy, Spain, France and Greece are among top European buyers of Iran's oil. In 2016, France purchased 88,900 b/d of oil and Greece 59,200 b/d of oil from Iran. Except for these four major buyers, other European countries have also been targeted by Iran's oil as Tehran seeks new markets in Europe. For instance, Belgium has been buying 15,000 b/d of oil from Iran; however, its import from Iran has experienced heavy fluctuations.

Iran's oil exports to Europe reached post-sanctions highs last May. It reached a level nearly equal to imports by Asian customers.

In that month, Iran was exporting around 1.1 mb/d of oil to European countries, very close to 1.2 mb/d it exported in the pre-sanctions era.

These figures also show that Iran's oil exports to European countries have grown 300% over the past two years.

Source: Iran Petroleum monthly

9376**1394

Link to comment
Share on other sites

74 (6082776) | Date: 18/07/2017 | Time: 23:57|
 

Iran will retaliate for US new sanctions

Tehran, July 18, IRNA – Foreign Ministry in a statement on Tuesday condemned the US contemptible and worthless move to add new Iranian individuals to the list of illegal sanctions, declaring that it will reciprocate the move imposing sanctions on a number of American natural and legal persons which have taken measures against the Iran and other Muslim regional nations.

 
82603074-71751483.jpg

The statement reads that as part of his country’s commitments under the Joint Comprehensive Plan of Action (JCPOA), the new US President extended the waiver of anti-Iran sanctions imposed by the US Congress. As per the nuclear deal, the US president is obliged to use his authority to cease the application of the nuclear-related congressional sanctions against Iran, and frequently extend this waiver. 

At the same time, the US secretary of state once again confirmed Iran’s compliance with the nuclear deal in a letter to the US Congress in a move that ran counter to all their previous claims. 

Despite fulfilling these obligations, the US administration added a number of other Iranian and non-Iranian natural and legal persons to the list of its unilateral and illegal sanctions under the pretext of supporting Iran’s missile program. The Trump administration made the move to compensate for its failure to persuade its European allies into withdrawing from the nuclear deal. 

The Foreign Ministry of the Islamic Republic of Iran condemns Washington’s contemptible and worthless move to add new names to the list of its illegal sanctions, and will reciprocate the move by imposing sanctions on a number of American natural and legal persons who have taken steps against the Iranian people and other Muslim nations in the region. The names of these individuals will be announced soon.

8072**1394

Link to comment
Share on other sites

2518344.jpg

TEHRAN - Nine large industrial, development, and tourism projects, worth 8 trillion rials (about $210 million) came on stream in the two Persian Gulf islands of Kish and Hendurabi.

On Monday, seven projects were inaugurated in Kish Island, ISNA reported. 

Changing the eastern breakwater of Kish Island’s harbor and constructing 24 ro-ro concrete docks (designed to loading and unloading wheeled cargos such as cars and trucks) was the first project, implemented through 285 billion rials (about $7.5 million) investment. The project will create direct jobs for 40 persons.

The second project was the establishment of Mahan Med Maymeh medicine and medical equipment production unit in Kish Industrial Estate through 700 billion rials (about $18.5 million) and €20 million investments.

The third one was the construction of Ocean Aqua Park through 1.8 trillion rials (about $47.6 million) investment by the private sector. It is planned to create jobs for 400 people.

The construction of a power plant and also a water desalinator was the fourth project. The power plant was built at the cost of 500 billion rials (about $13.2 million).

Vida five-star Hotel and Avay-e Khalij-e Fars Cultural-Recreational Complex were also inaugurated. The hotel was built through 1.7 trillion rials (about $45 million) investment by the private sector within 48 months. Also, 1.2 trillion rials (about $32 million) was invested for the construction of the cultural-recreational complex. 

Finally, a beach resort named Marina was inaugurated.

Meanwhile, an airport and a dock in Hendurabi Island were inaugurated on Tuesday. Construction of the airport was started four years ago. Hendurabi is regarded as a tourist hub.
 
MA/MG

PHOTO: The Hendurabi dock was inaugurated on Tuesday.

Link to comment
Share on other sites

TEHRAN- Iran inked two memorandums of understanding (MOUs) on three of its oil and gas fields with Russian and Japanese companies in Tehran on Monday, National Iranian Oil Company (NIOC) announced.

An MOU was signed between National Iranian South Oil Company (NISOC), a subsidiary of NIOC, and Russia’s state-controlled oil company Zarubezhneft on studying two oilfields in Iran. 

The MOU was signed by Hamid Derris, a director in NISOC, and Ilyus Khamitov, a director in Zarubezhneft.

Based on the MOU, conducting development studies on Rag Sefid and Shadegan oil fields in Iran’s southwestern Khuzestan province is handed over to Zarubezhneft.

The Russian company is committed to submit the results of its studies to NISOC within nine months as of signing the MOU.

NIOC signed the other MOU with Iran’s Petropars Group and Japan’s Toyo Engineering Corporation on rehabilitation of facilities and upgrading gas production from Salman gas field in the Persian Gulf.

The MOU was signed by Gholam-Reza Manouchehri, NIOC’s deputy managing director for development and engineering, Hiroshi Sato, Toyo’s director of energy business unit, and Hamid Akbari, Petropars’ managing director.

“The deal, in the form of a heads of agreement (HOA), will be signed in near future,” the report said.

Based on the MOU, Petropars will finance the study phase of the project and Toyo will fund the execution phase.

Link to comment
Share on other sites

ولی الله سیف
News ID: 4033058 - Mon 17 July 2017 - 10:06
TEHRAN, Jul. 17 (MNA) – CBI governor, at a meeting with deputy governor of State Bank of Vietnam, reported on efforts to create links between commercial banks of the two countries.

Speaking at a meeting with Mrs. Nguyen Thi Hong, Deputy Governor of State Bank of Vietnam (SBV), in Tehran, Governor of Central Bank of Iran (CBI) Valiollah Seif said negotiations were being held within framework of a joint banking committee between the two sides; “during the earlier visit of Iran’s President to Vietnam, the two countries voiced great willingness to expands bilateral ties.”

As per orders issued by President Rouhani, we feel committed to create necessary grounds for banking relations in a bid to facilitate and boost mutual cooperation, noted the official urging both sides to spare no effort to this end given that strong and firm banking connections are prerequisite to proper economic transactions.

He described transactions through local currencies as a suitable option for establishing links between banks of Iran and Vietnam recommending that preliminary talks be held in order to further bolster banking collaborations.

“Broker relations can now be formed between commercial banks of Tehran and Hanoi given that representatives of these banks are now more familiar with each other,” underlined CBI governor.

Seif went on to enumerate the measures taken by CBI in recent years as regards Anti-Money Laundering and Terrorist Financing Rules saying “CBI mainly aims to comply with international standards so that foreign banks will have confidence in launch partnership with Iranian counterparts.”

He also touched upon tourism industry as a venue for reinvigorations of cooperation between the two countries for which central banks of Iran and Vietnam are required to offer relevant services.

Later at the meeting, SBV deputy governor voiced satisfaction towards bilateral talks asserting that president of Iran and Vietnam were eager to deepen joint cooperation by investigating trade, banking and investment capacities.

The banking official of Vietnam called for regular holding of the joint banking committee adding “expert delegations of both sides seek to continue joint session in order to exchange experiences and resolve ambiguities in trade and banking arenas.”

Link to comment
Share on other sites

One slipped through to the keeper...

 

EconomyBusiness And Markets
Saturday, June 24, 2017

Forex Rate Unification Needs Real Rates

 

The unification of foreign exchange rates should be accompanied by setting real exchange rates, otherwise the plan will fail as in the past, the head of Iran Export Confederation said.   

Mohammad Lahouti’s statement came after the Wednesday meeting of Money and Capital Markets Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture, during which Gholamali Kamyab, the Central Bank of Iran’s deputy governor for foreign exchange affairs, voiced his support for unifying the forex rates.

“Everyone in the meeting talked about foreign exchange rate unification while no one mentioned the necessity of moving toward real forex rates,” Lahouti was quoted as saying by IRNA.

He added that exporters don’t favor higher exchange rates, but they demand the implementation of a law based on which the inflation rate determines the forex rates.

According to a report by the Institute for Trade Studies and Research (affiliated to the Ministry of Industries, Mining and Trade), the government has kept the exchange rate lower than its real value by 38% and 11% in 2013 and 2016, respectively.

Lahouti said the rule for taking into account  the ratio of the price level abroad and the domestic price level for determining the exchange rate has existed since the third five-year development plan(2000-4), but previous administrations never implemented it.

“If the forex rates do not increase in tandem with inflation, that would hurt domestic production since it ruins their competitive edge, as a result of which imports and smuggling will significantly increase,” he said.

The ITSR report indicates that in the last Iranian year (ended March 20, 2017), the value of commodities smuggled into Iran hit $15 billion, which is equivalent to 22% of all imports (both legal and smuggled).

Lahouti emphasized that the important issue is to support exports without increasing the forex rates since it would not help exports, as a commensurate increase in inflation and forex rates will ensure the continuation of exports.

Domestic production in Iran is highly subsidized by the state. However, overshadowing the country’s protectionist policies is the practice of allocating cheap, subsidized foreign exchange by the government to imports, which runs counter to the spirit of boosting domestic industries.

Iran currently uses two exchange rates: the free market rate, which stood at 37,440 rials to the US dollar on Friday, and an official exchange rate for state transactions fixed by CBI at 32,491 rials on Thursday.

In order to bridge the gap between the two rates, the government began to gradually increase the official exchange rate for it to get closer to the unofficial market rate and tried to shorten the list of imports eligible to receive foreign currency at official rates.

Top economic officials, including CBI Governor Valiollah Seif and Economy Minister Ali Tayyebnia, had repeatedly promised that the forex rate will be unified soon after all the prerequisites are in place.

 Lacking Banking Ties With Qatar

Lahouti noted that despite the statements of CBI’s deputy governor for foreign exchange affairs at the Wednesday meeting, Iran’s banking relations are not the same as they were before the nuclear sanctions and exporters still use high-risk runaround methods to transfer their money because it is not available through the banking system.

“European banks do not accept Iranian commodities’ certificates and most of Iran’s trade is with Iraq, Afghanistan and the UAE where the only correspondents are Iranian banks since foreign banks don’t work with Iranian exporters,” he added.

Since the removal of international banking restrictions in January 2016, Tehran has secured links with only a limited number of smaller banks as US sanctions remain in force and large foreign institutions still fear potential fines.

Lahouti said Iran cannot get hold of Qatar’s market due to its lack of banking ties with Iran.

Link to comment
Share on other sites

The Money and Capital Markets Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture held a meeting on Saturday to weigh in on the requirements of the long-overdue plan to unify foreign exchange rates and the country's progress in achieving this goal.

The Central Bank of Iran's deputy governor for foreign exchange affairs was the special attendee who said the Iranian government considers foreign exchange rate unification necessary and intends to implement it as early as 2013.

"Rate unification is only useful when it is stable and consistent, but if it is done half-heartedly, we won't be able to put it right for years," Gholamali Kamyab was also quoted as saying by ICCIMA's official news website.

Kamyab noted that the volume of forex arrears is a crucial prerequisite for adopting a single exchange rate regime, which is at a low level at present since Iran was unable to absorb any significant foreign loans in recent years.

"Our external debts are lower than international standards and the amount of short-term accounts is not at a high point either," he added.

Kamyab referred to CBI's measures taken so far to help achieve rate unification such as shortening the list of imports eligible to receive foreign currency at official rates as well as making changes in foreign exchange regulations, which will be announced after the rate unification is implemented.

If You Fail

The CBI official pointed to the first attempt at rate unification in 1993 when the country's foreign debts exceeded $30-40 billion and national reserves were at an all-time low.

The economy back then totally depended on oil income, which led to the scheme's failure and problems for businesses.

 "However, rate unification was implemented precisely and completely in the second attempt in 2002 but unfortunately proved short-lived due to political events and unsound economic policies," he said.

Kamyab considered the growth in non-oil exports positive saying it would help the process of scrapping dual exchange rates. "Our economy should be export-oriented with exports taking center stage in all economic policies".

Kourosh Parvizian, the head of the commission and president of the Association of Private Banks and Credit institutions, also attended the meeting and elaborated on the positive aspects of forex rate unification as it would benefit both ordinary citizens and the production sector.

Iran had adopted single exchange rates twice in the past. The first experience dates back to 1993 when it did not last more than a few months due to economic turmoil and the exchange rate regime went back to multiple rates.

The second time though, following the experience gained from previous setbacks and reforms in forex and trade policies to deregulate foreign trade, foreign exchange rate unification was successfully implemented and a "managed floating system" was announced in 2002.

Unfortunately, it only lasted until 2010 when the next administration failed to observe financial and budgetary discipline.

Iran currently uses two exchange rates, the free market rate, which stood at 37,410 rials to the US dollar on Wednesday, and another official exchange rate for state transactions. CBI fixed the official rate at 32,500 rials on Wednesday.

In order to bring the rates together, the government began to gradually increase the official exchange rate for it to come closer to the unofficial market rate. CBI has succeeded in narrowing the gap between the official foreign exchange and free market rates as their difference stood at 18% in February but it currently hovers around 13%.

"We are not saying the nuclear deal has resolved every issue but foreign banks' unwillingness to open credit lines for us has nothing to do with that," Kamyab said, noting that banking relations are improving, though hurdles pertaining to the banks' internal problems remain.

"We have to admit that international standards have changed and we have fallen behind."   

While many officials, including Central Bank of Iran Governor Valiollah Seif had initially promised that forex rate unification would be realized by the end of the previous fiscal in March, that has not materialized due to what the officials call "unfulfilled conditions".

Since the removal of international banking restrictions in January 2016, Tehran has secured links with only a limited number of smaller banks as US sanctions remain in force and large foreign institutions still fear potential fines.

Banks remain nervous after US penalties, including a $9 billion (£7.32 billion) fine on France's BNP Paribas, were imposed in 2014, partly for violating nuclear-related financial sanctions against Iran.

Link to comment
Share on other sites

The Iranian banking system paid out 1.01 quadrillion rials ($27 billion) worth of loans to nearly 1.4 million applicants in the first three months of the new Iranian year to June 21, marking an 8.5% growth compared with the same period of last year.

According to the latest data made available by the Central Bank of Iran, the services sector grabbed the lion’s share of the bank loans both in terms of number and volume.

More than 780,000 applicants in the sector received loans worth more than 413 trillion rials ($11 billion) during the first quarter of the Iranian year to June 21, accounting for 40.8% of all the offered credits.

The industries and mining sector with loans amounting to 327.6 trillion rials ($8.7 billion) and the business sector getting 125.5 trillion rials ($3.3 billion) were the next major recipients of the credits accounting for 23.4% and 12.3% of the total loans, respectively.

After the services sector, the agriculture and housing sectors with 235,300 and 165,650 loan applicants received the largest number of allocated credits.

The housing sector, which has not yet fully recovered from its long-lasting recession, only bagged 71.3 trillion rials ($1.9 billion) or 7.3% of the total amount of loans, which is considerably low, considering the size and value of the key sector.

As noted by CBI, care should be taken to ensure the growth in banks’ loan portfolios does not raise inflationary pressure, since demand for credit is particularly high.  

Thus, recapitalization of banks, improvement of efficiency in allocating working capital loans to productive activities, reduction of bad debt and navigation of firms to the capital market are recommended.

As the report indicates, the share of working capital loans for all economic sectors in the period stood at 662.7 trillion rials ($17.6 billion), which account for 65.4% of all loans during the period.

The share of working capital loans to stimulate industries and mines was 285.1 trillion rials ($7.6 billion), which equal 43% of all the credits extended to meet the working capital needs of businesses.

Industries and mines received 87% of their credits as working capital while they garnered a significant share of all loans offered by the banking system to business sectors.

The services sector was the runner-up, grabbing 219.8 trillion rials ($5.8 billion), or 33% of the entire working capital loans. More than half of its credit was allocated to meet working capital needs.

A study of the report reveals that the average value of each loan that went to the industrial and mining sector was considerably higher than that extended to other sectors, standing at 6.65 billion rials ($177,000).

The figure for trade loans, which had the second highest average value, was about 777 million rials ($20,500) while loans allocated to agriculture sector held the lowest average value at 303 million rials ($8,000) during the first three months of the current Iranian year.

Link to comment
Share on other sites

The Central Bank of Iran is set to meet the immediate demand for 550,000 marriage loans, CBI’s deputy for credit affairs announced.

“Currently, half a million applicants are waiting to receive the marriage loan. CBI intends to reduce the number to 50,000 individuals,” Ali Asghar Mirmohammad Sadeqi was also quoted as saying by CBI’s official website.

According to the official, marriage loans would be extended to applicants from the banks’ interest-free loan fund worth 50 trillion rials ($1.3 billion) and CBI would make no contributions.

“The exigency plan will be executed in two months starting July 23,” he said.

Noting that 70,000 to 100,000 people apply every month for marriage loans, Sadeqi added that 70,000 to 80,000 loans are being doled out by banks every month.

Based on CBI’s statistics, 31 banks and credit institutions currently give marriage loans, which have witnessed a 158% growth over a period of 48 months ending March 20, 2017.

Lenders charge a 4% interest for the loan, which has to be repaid in four years.

More than four million individuals have received marriage loans in the last four years. The total amount of loans was valued at 191.3 trillion rials ($5 billion), registering a 72% increase compared to the preceding four years.

 Up until 2015, 30 million rials ($800) were given as interest-free marriage loans per person. The government increased the amount to 100 million rials ($2,600) per person, and also earmarked the same amount in the current year’s budget, which was passed by the parliament.

Link to comment
Share on other sites

Thai Economic Team Expected Next Week

 

An economic delegation of Thai economic players and business owners, including producers of edible oils, coconut powder, hair and skin-care products, ginger, chocolate, jelly beans and chewing gum, fruit and vegetables, sugar, confectionary, biscuit and wafer, crisps, cosmetics, pineapple conserve, corn and coffee, is scheduled to arrive in Tehran on July 23, Iran Chamber of Commerce, Industries, Mines and Agriculture’s news portal reported.

During their weeklong stay, the delegation is also scheduled to attend the Iran-Thailand Economic Conference at ICCIMA’s headquarters in Tehran on July 24.

Link to comment
Share on other sites

Canada will provide $100 million in finance for a deal between Montreal-based multinational aerospace and transportation company, Bombardier Inc., and Iran’s Qeshm Free Zone Organization for purchasing 10 passenger planes, the FTZ’s chief executive, Hamidreza Momeni, has said.

The free zone is planning to launch a new airline called Fly Qeshm. 

“Our talks with Canada’s Bombardier are almost final,” he was quoted as saying by Iran’s Tinn News on Tuesday.

Momeni said the $100-million finance will cover 80% of the deal, which entails the supply of the 104-seat planes. 

“We are doing our best to receive these planes before the end of the current year (March 20, 2018),” he said.

He was quoted earlier as saying by Iran newspaper that the FTZ will receive permits to launch the new airline by July 29, adding that the airline will start operation as of February 11, 2018.

The organization’s talks with Bombardier to purchase passenger planes were publicized for the first time in April 2016, when Pierre Beaudoin, the executive chairman of Bombardier, led a delegation to Iran.

Link to comment
Share on other sites

 

n order to protect the interests of banks and credit institutions' depositors and shareholders, and maintain the stability and health of banking system, the Central Bank of Iran has set a number of conditions vis-à-vis banks' financial statements whose fulfillment is necessary for shareholders' annual meetings to become viable.

According to CBI's directive, banks and credit institutions are obliged to present their financial statements and their footnotes, based on the International Financial Reporting Standards, to their board members, independent auditors, registered inspectors and also depositors and shareholders for the 2016-17 fiscal year in line with CBI's updated sample.

The directive emphasizes that banks and credit institutions must definitely avoid releasing discrepant financial statements for an accounting period.

It also deems it necessary for banks and credit institutions' independent auditors to professionally consider only financial statements compatible with CBI's framework and avoid any vague conditional article that is hard to understand for shareholders and users.

In other words, CBI has not put any limit on conditional articles but they have to be transparent and explain the details and results.

The IFRS-based balance sheet templates were first released by CBI in February to improve financial transparency and the international operations of Iranian banks.

CBI has seriously pursued the complete implementation of IFRS and other international banking requirements such as Basel Accords.

It is noted that the categorization of assets, incomes and liabilities, in addition to the assessment of dividend shared among shareholders and depositors should be done with utmost care, in line with accounting standards and CBI regulations.

In particular, CBI has highlighted a number of prerequisites to allow banks and credit institutions to hold their annual general meetings that are usually held in late summer.

Among these, banks and credit institutions should send the final draft of their financial statements to CBI at least one month before the meeting.

Independent auditors and registered inspectors should send their reports to CBI at least a month before the meeting.

Banks also have to report their failures in complying with money and banking regulations and CBI's directives at least a month before the general meeting.

Following the presentation of the final draft of independent auditors and registered inspectors' reports, these officials should hold a joint meeting with CBI supervisors to exchange ideas and resolve any possible ambiguity.

The directive noted that the responsibility of failure in implementing the regulations lies with banks' CEOs and board members, and the banks will not get a permit to hold an annual general meeting unless they have adhered to all the aforementioned rules.

IFRS are a single set of accounting standards, developed and maintained by the International Accounting Standards Board for application on a globally consistent basis by developed, emerging and developing economies.

These standards help provide investors and other users of financial statements with the ability to compare the financial performance of publicly listed companies on a like-for-like basis with their international peers.

After the lifting of sanctions imposed on Iran’s banking system, the necessity of conforming to IFRS was crucial to ease and speed up the process of absorbing foreign resources.

IFRS standards are now mandated for use by more than 120 countries, including the European Union and by more than two-thirds of G20 states.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.