Iranian Rial

screwball · March 1, 2017

And they get smaller still no mention...

Post-sanction Iranian economy shows ‘impressive recovery’: IMF

Economy

February 28, 2017

TEHRAN- The Iranian economy has had an “impressive recovery” following sanctions relief last year, the International Monetary Fund (IMF) said.

Iran’s economy is expected to grow 6.6 percent in the calendar year ending March 20 and stabilize at 4.5 percent “over the medium-term as the recovery broadens,” the IMF said in a report released on Monday.

The report also highlighted the government’s ability to maintain inflation in single digits and stabilize the foreign exchange market, Bloomberg reported on Tuesday.

The World Bank, in its early January report titled Global Economic Prospects, had forecasted a 5.2 percent gross domestic product (GDP) growth for Iran in 2017.

The report put the country’s GDP growth at 4.6 percent in 2016, while it predicted 4.8 percent and 4.5 percent growth for Iran in 2018 and 2019, respectively.

GDP growth in Iran was strengthened considerably last year, bolstered by large gains in oil production as well as automotive, trade and transport sectors, the report said.

screwball · March 1, 2017

Rouhani participates in CBI’s annual forum

TEHRAN, Feb. 27 (MNA) – President Hassan Rouhani has attended Iran’s Central Bank annual forum on Monday morning, where he unveiled new Iranian 10,000 Rls. bank note.

interesting...

screwball · March 1, 2017

Government Spokesman Mohammad Baqer Nobakht said the expansion of Iran’s budget during the administration of President Hassan Rouhani has not kept pace with inflation.

Nobakht, who also chairs Iran’s Planning and Budget Organization, told reporters on Monday that “general revenues” stood at 2.1 quadrillion rials ($55.1 billion) in the fiscal year to March 2014.

"The figure reached 2.9 quadrillion rials ($77.3 billion) in the current budget (March 2016-17)," he said.

“The budget has increased 40% in four years. Assuming an average inflation rate of 10% during the period, we cannot consider the budget expansionary."

Nobakht reviewed the changes in earnings and expenditures in the past four years. He said bonds had the highest rise in terms of generating revenues for the government.

Bond earning has reached 386 trillion rials ($10.1 billion) this year, up 2.5 times compared to the fiscal 2013-14.

Customs revenues and tax earnings, both measured in one category, reached 1.3 quadrillion rials ($34.1 billion) in the current Iranian year, which shows an 81% hike compared to the fiscal March 2013-14.

This year’s crude earnings rose 13% compared to the fiscal 2013-14 to stand at 694 trillion rials ($18.2 billion).

As for the expenditures, the government has to spend more to settle its bond issues. Spending associated with bonds averaged 100 trillion rials ($2.6 billion) this year, registering an 82% rise over the past four years.

Government investment in infrastructure development has increased 67% during the four-year period to hover around 370 trillion rials ($9.7 billion) this year.

“General spending", including those associated with social welfare, education, defense, security and health, has increased by 59% during the period under review.

> Myriads of Challenges

Nobakht referred to the big size of the government as the biggest challenge facing the administration.

The government holds the majority stake in Iran’s economy, bringing about low productivity and high costs. More than two-thirds of the revenues projected for next year will be spent to cover the expenses of ministries and their affiliated companies and organizations.

As for other inevitable costs, Nobakht referred to the huge amounts of cash that the government is obliged to pay the public as part of the cash subsidy scheme. He also referred to resources earmarked to purchase agricultural products such as wheat and rice from domestic farmers.

The administration is unable to reduce most of those costs, as they fall into the budget’s fixed expenditures, as opposed to the flexible funding for development projects.

Figures published by the Central Bank of Iran show the budget earmarked for the development sector has never been fully allocated in the past few years.

The government was supposed to earmark $10 billion to development projects in the eight months of the current Iranian year (March 20-Nov. 20), whereas only 39% of this amount were injected.

This, in fact, has been the case during the past three years, as the government only met 58%, 68% and 39% of its development spending target during March 2015-16, March 2014-15 and March 2013-14 respectively.

The Iranian Parliament on Sunday passed Iran’s general budget for the upcoming new year (March 2017-18). Lawmakers put the figure at 3.98 quadrillion rials ($104.6 billion).

The general budget includes revenues of ministries and state institutions, which amount to 516.3 trillion rials ($13.5 billion). In the budget law of the current Iranian year (March 2016-17), the figure stood at 3.35 quadrillion rials ($88 billion), which is about 19% less compared to the new budget’s figure.

Nobakht also refers to the multitude of unfinished projects as another major issue the government is grappling with.

According to Gholamreza Shafei, deputy for technical affairs and infrastructure development at Planning and Budget Organization, the government needs 4 quadrillion rials ($105 billion) to complete 70,000 unfinished projects across the country.

“It would take at least 10 years to complete all these projects,” Shafei said.

Almost half of the next year’s development budget ($7.5 billion) will be used to complete 2,700 incomplete projects.

These unfinished projects have led to the accumulation of huge debts on the part of the government to contractors. The total value of overdue payments to contractors by ministries, including the Ministry of Energy, has been unofficially estimated at $35 billion.

According to Nobakht, the only way out of this problem is to pave the way for the private sector to invest in infrastructure projects.

screwball · March 1, 2017

Australian companies eying expansion of ties with IMIDRO

Economy

February 27, 2017

TEHRAN- Australia’s Victorian Department of Economic Development, Jobs, Transport and Resources Secretary Richard Bolt in a Monday meeting with Head of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) Mehdi Karbasian in Tehran, expressed content about cooperation between Australian companies and IMIDRO during the past two years, hoping for expansion of ties.

As IRNA reported, Bolt said that the two sides have experienced cooperation on implementing some projects as well as consulting and can improve their ties in other fields including mining, regarding their expertise, technology, and education potentials.

Karbasian, for his part, referred to Iran’s gas resources and Australia’s iron ore mines saying that the two countries can collaborate on converting iron ore to steel.

sandfly · March 1, 2017

S b I'm ready to get drunk

screwball · March 1, 2017

Tehran, Canberra to uplift relations in mining sector

News ID: 3919672 - Tue 28 February 2017 - 13:55

Economy

TEHRAN, Feb. 28 (MNA) – IMIDRO head has proposed formation of a joint working group to strengthen mining cooperation between Iran and Australia and conduct common projects.

Managing Director of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) Mehdi Karbasian made the offer while addressing a meeting with the visiting Australian delegation headed by Victorian Department of Economic Development, Jobs, Transport and Resources Secretary Richard Bolt.

Karbasian enumerated commonalities of the two sides in mining and economy sectors saying “proper grounds have been provided for elevation of collaborations in various sectors like exploration, research and development, training, consulting, reducing water and energy consumption as well as production of minerals like aluminum and steel chain.

He pointed to cooperation of Iran with companies from Italy, Germany, India, Korea and Japan in the post-JCPOA era stressing that reduction of water consumption remained a key priority for Iran in production of mineral products.

IMIDRO director pointed to the distinguished position enjoyed by Iranian Mineral Processing Research Center (IMPRC) in the Middle East adding “as of three years ago, Iran has begun exploratory projects as evidenced by discovery of considerable amounts of new reserves.”

He went on to point to presence of natural gas and a variety of mineral reserves in Iran maintaining “in view of our growth potential as well as the need for Iran and neighboring states’ for construction and development, joint working groups or firms can be formed to meet interests of all parties.”

Also at the meeting, Australia’s Richard Bolt, recalled that his country’s companies enjoyed age-old history of ties with Iran adding “outcomes of the present session will be conveyed to Australian firms in a bid to bolster existing relations.”

The visiting official welcomed the Iranian side’s proposal for reinvigoration of ties maintaining that his visit to Iran aimed to investigate venues for cooperation and ink Memoranda of Understanding (MoUs) in various sectors.

Australia’s secretary for department of economic development also emphasized that expansion of Tehran-Canberra relations had been underway for the past two years.

Ian Biggs, Australia's Ambassador to the Islamic Republic of Iran, for his part, expressed amazement towards great potentials of Iran in mining sector and said “we are probing into development of relations between the two parties, an initiative which requires exchange of expert groups.”

He deemed research and development, discovery and geology as possible venues for bilateral collaboration between Iran and Australia.

screwball · March 1, 2017

1 minute ago, sandfly said:

S b I'm ready to get drunk

I am thinking about starting early...

screwball · March 1, 2017

Russia says in talks over Iranian oil purchases

Economy

February 28, 2017

Russia has been in talks of buying oil from Iran, Energy Minister Alexander Novak said on Monday, confirming earlier reports.

At the sidelines of an economic forum in the Black Sea resort of Sochi, Novak told reporters he expected the deal to be reached "within weeks." The purchases will be carried out via Promsirieimport, a trading unit of Russia's Energy Ministry, he said.

Last week, Iranian Students' News Agency (ISNA) reported that Iran will begin selling 100,000 bpd of oil to Russia within the next 15 days and receive payment half in cash and half in goods and services.

screwball · March 1, 2017

Diplomat: Tehran, Oslo cooperation to go to pre-sanctions era

Tehran, Feb 28, IRNA – Norwegian Envoy in Iran John Mikal Kvistad said on Tuesday that Tehran and Oslo by overcoming some challenges should prepare the grounds for return of economic boom between the two countries to pre-sanctions era.

He made the remarks here in a conference dubbed as; cooperation development and technology of upstream sector of oil and gas of Iran and Norway.

Kvistad announced that banking problems and transparency issues are among challenges which by overcoming them grounds for expansion of trade cooperation between the two countries will be prepared.

He expressed hope that by finalization of new model of oil contracts in Iran, bilateral cooperation could expand noticeably.

The Norwegian envoy reminded his country’s readiness to help for banking cooperation with Iran and added that to this end, it needs signing final agreements, beyond current memorandum of understandings.

Kvistad said that Iran should use post-JCPOA capacity.

Deputy Minister of Petroleum and Energy of Norway Yel Bourg Fribourg also underlined expansion of cooperation between the two countries in the field of oil and energy and introduced technical and trade capacities of Norwegian companies.

Norway in north Europe has huge oil reserves and in comparison to its population, is the largest non-Middle Eastern oil and natural gas producer in the world.

The most famous Norwegian oil company is Statoil, which already had activities in Iran.

screwball · March 1, 2017

Can anyone translate this article?

http://www.irna.ir/en/News/82448379/

screwball · March 1, 2017

Foreign Minister Mohammad Javad Zarif highlighted the need for restructuring the Economic Cooperation Organization to realize its objectives.

Addressing a conference of ECO foreign ministers in Islamabad on Tuesday, Zarif touched on a roadmap developed by member states that lays out ECO’s goals and programs in the coming decade, known as the ECO 2025 Perspective Plan or what he called the “vision”.

“The vision, along with its associated plans for action, is expected to drive us toward further regional integration and cohesion. If it happens, ECO will celebrate an important milestone in its three-decade history of evolution,” according to a transcript of Zarif’s remarks carried by Tasnim News Agency.

“Ensuring that the vision and other such frameworks will deliver their expected output, in a timely and effective way, requires a new regional economic architecture for cooperation and integration within ECO.”

Zarif noted that ECO should invest more time and energy to carefully devise the vision’s implementation frameworks and mechanisms, and to ensure a policy environment conducive for its realization.

He reaffirmed Iran's "unwavering" support for the organization, describing it as the "best" platform for promoting relations between regional countries.

"We believe that Economic Cooperation Organization is by far the best option for cooperation among the countries of the region. We firmly believe ECO-sponsored regionalism not only improves prospects for individual and collective economic development, but enhances political and security relations among member states," he said.

The Tuesday event saw Zarif handing over the rotating chairmanship of the body's ministerial council for the next four-year period to his Pakistani counterpart Sartaj Aziz.

"Let me conclude by assuring the new ECO chairmanship, the Islamic Republic of Pakistan, of the full support of the Islamic Republic of Iran. We will also continue our advocacy policy toward the secretary-general and the ECO Secretariat to accomplish their critical role in initiating, implementing and monitoring activities within the organization," Zarif said.

Today, President Hassan Rouhani is attending the 13th ECO Summit in the Pakistani capital.

ECO, which has its headquarters in Tehran, comprises Pakistan, Turkey, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan as well as the Islamic Republic itself.

The main purpose of the organization, which was set up in 1985, is to promote economic, technical and cultural cooperation among member states.

screwball · March 1, 2017

Iranian lawmakers approved 3.5 trillion rials (over $92.7 million) in the budget earmarked for the promotion and implementation of industrial and mining projects in underprivileged areas across the country.

The decision on Tuesday is part of the review of the budget bill for the upcoming fiscal year (starting March 20, 2017).

As per the legislation, the Ministry of Industries, Mining and Trade and the Iranian Mines and Mining Industries Development and Renovation Organization are entitled to use this budget for implementing new projects or completing unfinished ones in cooperation with the private sector in disadvantaged areas.

Tehran to Host Slovak Delegation

Ahigh-ranking commercial delegation from Slovakia, comprising representatives from 35 private companies, are scheduled to arrive in Tehran on March 7 to explore ways of expanding trade and economic ties with their Iranian counterparts at Tehran Chamber of Commerce, Industries, Mines and Agriculture. Deputy Prime Minister for Investments and Informatization Peter Pellegrini will be heading the visiting delegation, accompanied by Slovak Minister of Finance Peter Kazimir and Minister of Economy Peter Ziga, Mehr News Agency reported.

screwball · March 1, 2017

To generate financial resources from the capital market, 50 small- and medium-sized enterprises have been referred to Iran Fara Bourse.

Deputy Minister of Industries, Mining and Trade Ali Yazdani also told IRNA that eight SMEs have already been accepted.

“IFB will accept the industrial entities, provided they submit their audited financial statements,” he said.

Iran Fara Bourse over-the-market exchange set up a platform for trading the shares of small- and medium-sized enterprises in December.

The move is expected to give a shot in the arm to Iranian SMEs, which account for more than 90% of all companies across the country, but have a small share in gross domestic product.

According to Yazdani, who is also the chairman of Iran Small Industries and Industrial Parks Organization, 88,000 certified small businesses account for 42% of employment and 17% of production in Iran’s industrial sector.

By definition, enterprises run by 50 workers or less and 100 workers or less are considered small- and medium-sized respectively.

“The advent of SMEs in the capital market will help drive the economy toward greater transparency. It will also spur employment and growth by funding smaller businesses,” CEO of Securities and Exchange Organization Shapour Mohammadi said.

Rouyesh Lotus, Iran’s first venture capital trust to be listed, opened for underwriting on Iran Fara Bourse. The fund, which will invest in healthcare, biotechnology and financial technology, hopes to raise 105 billion rials ($2.6 million) for Rouyesh Lotus during the underwriting period from investors on IFB and 350 billion rials in the next six months.

Based on regulatory requirements by the Securities and Exchange Organization, venture capital funds must keep 30% of their investment in cash to maintain their liquidity.

According to Sorena Sattari, President Hassan Rouhani’s deputy for technology, loans are not a good method for funding newly-formed startups and a considerable part of their capital should come from venture capital funds as equity.

Nonetheless, reports show that the government granted loans worth 156.8 trillion rials ($4.1 billion) to 22,893 small- and medium-sized enterprises in the 11 months to February 18, 2017.

The loans are part of a government plan to provide struggling SMEs with a total of 160 trillion rials ($4.2 billion) this year to stimulate the industrial sector, which has been grappling with deep recession in the past few years.

Farshad Moqimi, the deputy head of Iran’s Small Industries and Industrial Parks Organization, said small- and medium-sized enterprises have attracted $1.84 billion in foreign direct investment since President Hassan Rouhani took office in August 2013, of which $653 million have been invested since the implementation Iran’s nuclear deal.

“Since Rouhani became president, foreign investors have signed 47 contracts to establish small- and medium-sized industrial firms, creating 2,740 jobs,” he said.

“These contracts have been signed with Turkey, Azerbaijan, Ireland, Japan, Iraq, Afghanistan, Croatia, China, Germany, France, Turkmenistan and the UAE. Of all the agreements, 25 projects have become operational and the rest are either under construction or their machinery are being installed.”

Moqimi noted that seven of the 47 contracts have been signed since the removal of sanctions.

Years of sanctions imposed against Iran over its nuclear energy program began to roll back in January 16, 2016, as part of a historic deal the country cut with world powers in 2015. In exchange, Iran has agreed to limit the scope of its nuclear program.

Last month, Deputy Minister of Industries, Mining and Trade Reza Rahmani said some 20,000 SMEs have emerged from recession since the beginning of the current Iranian year (March 20, 2016).

Most NPLs Constitute Doubtful Debts

The banking system’s non-performing loans have reached 1,100 trillion rials ($30 billion), 60% of which are considered doubtful debts, said the head of Monetary and Banking Committee at the Expediency Council. “The banking system currently shoulders about 85-90% of the financing and it seems that this will continue into the upcoming Iranian year (starting March 20),” Asghar Abolhassani was also quoted as saying by Mehr News Agency. The official added that the projected figure in the sixth five-year development plan (2017-2022) for the capital market’s share in financing is 1,500 trillion rials ($40 billion) while the amount for the next Iranian year has been set at over 40 trillion rials ($10.5 billion). “The inflation rate witnessed many fluctuations during 1992- 2015 and liquidity was not safe from those fluctuations,” he said.

screwball · March 2, 2017