Iranian Rial

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Interbank forex by March!

credit cards by March!

Gasoline imports fo subsidies ending March! 

Things that make,youmgo hmmmm...

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Foreign Ministry to launch economic information bank

Tehran, Jan 2, IRNA – Deputy Foreign Minister said that the economic information bank of the Ministry of Foreign Affairs is to be launched by the end of the current Iranian calendar year (March 20, 2017).

 

Morteza Sarmadi told IRNA on Monday that opening this bank aims at developing economic cooperation with different countries and establishing real time contacts with foreign firms.

'Economic information of all countries will be available for business people in this bank,' he added.

'The economic information bank is the most important hub to link Iranian business people and they would be able to get access to their required information in any country through 140 embassies and consulates in other countries,' he said.

Sarmadi said a representative has been appointed as economic sector agent, adding that Iranian traders would be able to make contacts via phone or by mail to present their information and to receive answer.

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We should se another delete zeroes article within days...

[WheresmyRV?]

Screwball when do they open their 2017 budget?

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2 hours ago, WheresmyRV? said:

Screwball when do they open their 2017 budget?

Fiscal year starts march 22? Budget was before parliament dec2016 so should be activated around march?

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The Ministry of Industries, Mining and Trade has stopped taking orders for all foreign-made cars on its website without providing any explanation, several local websites reported on Monday.

The ministry often publishes and updates the list of cars that  can be imported on the website http://sabtaresh.tpo.ir/. On January 2 no cars were listed.

Since December 20, the website stopped taking orders for foreign cars assembled in the US following a directive from the government that US-made cars were no longer welcome.

In its latest update on January 2, however, the website stopped accepting orders for all foreign cars regardless of the country of origin.

Although the ministry has not issued an official statement about the suspension or possible change in policy, it could be related to the government's renewed efforts in reducing unnecessary car imports.

In December, the Rouhani administration sent a directive to the Ministry of Industries to the effect that import of cars by companies that do not have formal representation from the parent company or lack after-sales service centers will not be allowed.

Of the 43 auto importing firms only ten have been registered as official representatives of the brands they sell.

A report published by Mizan Online News Agency on December 31, 2016, did not mention the names of all the companies save for BMW Persia Khodro. It did, however, say that the ten companies were those who used to operate in Iran through “intermediary companies.”

US Cars Out the Door

Meanwhile, the Ministry of Industries stopped the placing of orders for vehicles made or assembled in the United States, said the head of Iran's Auto Importer's Association on January 1.

The ministry stopped accepting requests for importing cars made or assembled in the US after December 21, 2015, ISNA quoted Farhad Ehteshamzad as saying.

Iran's traffic police were the first to take action following the new rules. Eshteshamzad noted that several customers had bought cars made or assembled in the US, but the police refused to issue registration plates. He urged the officials to help unwitting car buyers who may have purchased a US-made car.

The cars made or assembled in the US which had made their way to Iran included a range of brands including Toyota, BMW, Volvo and Honda.

Cars are classified as consumer goods, and imports of all American-made consumer goods are apparently disallowed due to the nearly four-decade hostility of that country towards the Islamic Republic. The United States and Iran do not diplomatic relations. Ties were cut off soon after the revolution in 1979.

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South Korea’s Daewoo Shipbuilding and Marine Engineering Company (DSME) – the world’s second biggest shipbuilding companies – has announced a major deal to develop an construction yard in Iran.   

The company announced in a statement that it had sealed the deal with Iran’s Industrial Development and Renovation Organization (IDRO) affiliated to Iran’s Ministry of Industry, Mine and Trade. It added that a joint company would be accordingly established to develop a shipyard in Iran. 

The joint venture company will engineer and build the types of ships needed by Iran, the DSME said.

The company further added in its statement that the deal will help it make inroads into Iran’s shipbuilding market and export the related equipment.

The DSME further emphasized that the Iranian side wanted financing from the South Korean government as well as shipbuilding-related technology and know-how.

No details further were provided on the deal including its estimated value. 

Since 1983, the DSME has delivered 38 ships valued at $1.65 billion to Iranian companies, including the Islamic Republic of Iran Shipping Line (IRISL) and the National Iranian Tanker Company (NITC), based on media reports. 

The media reported in June that the South Korean shipbuilder was negotiating with Iran over a deal worth above $1 billion for construction of at least five jack-up oil drilling rigs.  While the fate of that deal is still not clear, the DSME was stunned earlier this month when it saw its domestic rival Hyundai Heavy Industries sign a major agreement with Iran’s IRISL for construction of 10 ships.

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From months to several days...lol

Iran says it expects to sign a new plane purchase deal with European aviation major ATR within the next few days.   

“Representatives of ATR will come to Tehran this Wednesday to have a final round of talks,” Iran’s Deputy Transport Minister Asghar Fakhrieh-Kashan was quoted by the media as saying. 

“The final version of the contract will be reviewed, and if there is no problem, it will be signed by both sides.”

Fakhrieh-Kashan added that the contract for 20 planes was worth $400 million, as reported by Reuters.

Iran's national flag carrier, Iran Air, signed a basic contract with ATR – which is co-owned by Airbus and Italy’s Leonardo Finmeccanica - in February to buy the light passenger planes from the France-based company. 

The planes were reported at the time to be the twin-engine turboprop ATR 72-600 aircraft each capable of carrying 70 passengers.

Fakhrieh-Kashan further emphasized that five of the planes would be delivered to Iran by April. 

He also added that all ATR aircraft would be used in domestic flight routes.  

Iran signed contracts with Europe’s Airbus and American planemaker Boeing in December to purchase around 180 jets.  

On the same front, reports emerged in Iran’s media on Sunday that the first installment of payments to Airbus will be made by the country’s Bank of Industry and Mine within the next days.  

This, Iran’s Persian-language Jahan-e Eqtesad reported, would be carried out through a mechanism defined by the Central Bank of Iran (CBI).   

The Iranian bank that will be in charge of payments to Boeing will be the Eghtesad Novin Bank, the daily added. 

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1. Economy
2. Business And Markets

Wednesday, January 04, 2017

USD at 39,500 Rials 

 

 

 

The rial depreciated to 39,500 against the US dollar on Tuesday, a slide of 400 rials compared with the previous day, according to the Association of Bureaux de Change Operators of Iran. The Emirati dirham’s exchange rate (for payment orders) reached 10,900 rials –up by 130 rials. Euro’s exchange rate fell 200 rials with Iran’s currency at 42,300. The British pound was traded at 48,900 rials, up by 700 rials compared with Monday. Turkish lira, however, gained slightly against the rial on Tuesday, with the Iranian currency at 11,650 rials to the lira. The gold coins’ prices mostly remained unchanged, except for Emami Gold Coin that experienced a drop of 0.57% and was sold at 11.4 million rials , according to Tehran Gold and Jewelry Union’s website.

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1. Economy
2. Business And Markets

Wednesday, January 04, 2017

CBI Seeking Self-Sufficiency of Fintechs

 

 

 

The Central Bank of Iran is determined to create an appropriate environment for the operation of fintech companies, the director of CBI’s Department for Information Technology said.

“Value creation is in the nature of fintech services … It's better for developers of financial technologies to change their mindset and stop seeking help from the government, since it would be costly for both fintechs and the government,” CBI's website also quoted Nasser Hakimi as saying on the sidelines of the Sixth Conference on E-Banking and Payment Systems held in Tehran on Tuesday.

Hakimi implied that regulating fintech companies will not necessarily help them grow.

"Still there is no clear understanding about fintechs and their operations. They are still in the making and are very successful. How can we decide about issues that are not defined yet,” he said.

“[Even] right now, we are making decisions for fintech companies without any of them being present here.”

According to the official, support for fintechs is being provided in line with support for users in other countries.

“The government is basically in charge of creating a competitive environment for the growth of these companies,” he said.

Hakimi said there has been much talk about fintechs in the media.

“Developers should be worried about recent talks, since it will not benefit them,” he was quoted as saying by IBENA.

High-Risk Decision-Making

Fintech firms are in direct contact with people, not with the government.

“The government is not good at making decisions for high-risk businesses,” he said.

 “Several fintech companies are already linked to the payment network … Their income is considerable, without being supported by anyone.”

Hakimi noted that Iran is where high-risk businesses manage to grow.

Earlier in December, the Office of Vice President for Science and Technology Affairs said it would send the final version of “financial framework of knowledge-based economy” to the government, in which fintech firms have been recognized as legitimate e-commerce entities.

Later, an official in the Ministry of Communications and Information Technology announced the development of a framework for the operation of fintechs.

The CBI also unveiled plans for launching a new regulatory body specifically for fintech firms.

Ali Kermanshah, CBI’s deputy for innovative technologies, said the central bank intends to set the rules for the operation of new players in financial markets instead of vetting each firm on a case-by-case basiss.

Back in October, Nasser Hakimi held a meeting with fintech developers where he said the CBI allows fintech firms to operate as long as they are not involved in money creation, currency exchange, offering payment tools (like cards) and  attracting deposits.

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Bank Mellat has issued more than $6 billion worth of payment orders since the implementation of Iran's nuclear accord with world powers last year, announced the bank's deputy for international affairs.

"During this period, 36 foreign exchange accounts have been opened in foreign countries [by Mellat] and the value of letters of credit issued by the end of the eighth month of the current fiscal year [November 20, 2016] stands at more than $1.1 billion," Aziz Akhoundi-Asl also said in reference to the international operations of the private bank in the wake of the landmark nuclear accord, reports Banker.ir.

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

According to the official, Bank Mellat has also done well with respect to issuing letters of guarantees and also issued the most foreign exchange guarantees among Iranian lenders.

Akhoundi-Asl hoped that the bank's branch in South Korea's Seoul would restart operations soon so that effective steps can be taken through this unit during the next Iranian year (starting March 21).

Noting that the Yerevan-based Mellat Bank CJSC, which is fully owned by Iran's Bank Mellat, will open a branch in Georgia next month, he also pointed to other target countries for establishing branches.

"Bank Mellat has made efforts to establish new branches in Italy, the Netherlands, Switzerland and a number of other target countries, which have not come to fruition yet," he said.  

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The housing sector's share in the Iranian annual budget has garnered mixed reactions from members of the Majlis Civil Affairs Committee.

While some believe the share of the housing sector in 2016-17 will be enough if it is realized in full, others warn about gloomier days for the already beleaguered sector.

A number of committee members spoke to ICANA, the official news service of the parliament, to offer views on the polarizing subject. In total, 8.14 trillion rials ($206.9 million) have been considered for the housing sector, which constitute less than 10% of the total budget allocated to the  Ministry of Roads and Urban Development.

The committee's spokesman criticized President Hassan Rouhani's neglect of the housing sector.

"If the government's proposed budget regarding the housing sector is approved unchanged, the sector will undoubtedly face worse conditions during the next year," Sadif Badri added.

Noting that the housing sector has received the least amount of capital in the annual budget, he added that the government needs to pay more attention to it for energizing the sector.

"Unfortunately, a quick look at the annual budget of 2017 shows no positive aspects about the housing sector," he said.

Another member of the committee called the budget share "meager", saying that with this share, the oft-promised boom in the beleaguered sector would be unimaginable.

"If [more] funds are not injected into the housing sector, it would find itself plagued by a variety of problems and will not be able to exit recession," Majid Kianpour added, stressing that it is vital for the housing sector's share in the annual budget to increase.

The lawmaker added that the Majlis Civil Affairs Committee will push to improve the housing share in the budget.

On the other hand, Seyyed Ahsan Alavi, a committee member, said if the funds that have currently been considered for the housing sector are fully allocated, the sector will "experience a tangible growth".

He believes the government will witness a recovery in the housing sector during the next fiscal year (starting March 21), but this will also entail an increase in home prices.

"Inciting demand in the housing sector will be made possible by providing mortgages and allocating subsidies," he said. "The exit of the housing sector from recession could have a 20-25% positive effect on the economy and that is why the government must focus its energies on this goal."

Fund Allocation in Disarray  

Another member of the parliamentary committee said the share of the housing sector in the budget is "sufficient for our needs", as his main concern lies elsewhere.

"A significant part of the budget for the current fiscal year has yet to be allocated and this concern is also valid for next year," Mohammad Mehdi Eftekhari added.

The MP stressed that under the current circumstances, policymaking carries more weight than fund allocation.

"When the government deems the housing sector's share in the annual budget to be enough but is unable to map out a clear blueprint for the sector and outline a plan to allocate the funds, then there is cause for worry," he said.

This comes as the housing sector has not had a good start in winter.

Hesam Oqbaei, the head of Tehran Association of Realtors, announced that the number of residential deals nationwide halved during the early days of winter.

"In the first 11 days of the current month [21-31 December], 18,149 home sales were registered in the country," Oqbaei was quoted as saying by Banker.ir. "That is while the figure for the corresponding period last year stood at 34,000, which shows an almost 50% decrease. It can be said that we have experienced a return to recession."

The official notes that this decline has taken place while it was thought that a growth in home sales in the first eight months of the year would extend to the whole country.

Forex Market Impact

While the recent rise in currency rates in the Iranian forex market will not dramatically stir demand in the housing market, it will surely not prove inconsequential, the Comprehensive Housing Plan's deputy for research said.

"Even though soaring foreign exchange rate hikes will not create a 200% rise in demand in the housing market, it will not be without effect and its consequences will become evident in the first half of next year," Fardin Yazdani was also quoted as saying by ILNA.

Major foreign currencies, e specially the US dollar, gained significantly against the rial in recent weeks before losing some ground later.

President Hassan Rouhani sought to reassure Iranians on Sunday that the government would work to protect market stability after the country's currency fell to a record low last week.

"I am optimistic about the country's economic situation and ... I want to reassure our people that foreign currencies will not keep on going up," Rouhani said in a live interview with state television.

Unveiled two years ago, the Comprehensive Housing Plan drawn up by the government seeks to provide all low-income groups with housing by 2025. Acting as a roadmap for the governments, it outlines the obligations of the governments in providing housing for different social classes.

Asked whether the current increase in currency rates has the potential to drive up home prices significantly, Yazdani reassured that "it will not single-handedly cause house prices to skyrocket , but its influence cannot be ruled out."

"Either way, the housing sector is now facing an accumulation of demand as a result of years of stagnancy and now with the rise in money supply, the cash flow could end up in the housing market if not directed to suitable channels," he added.

Noting that consumers and investors exert influence on the housing market, the official said there is currently enough capital in the market, but is blocked in various sectors or flowing toward the gold and currency markets.

"Therefore, as long as stagnancy reigns over the economy, a sudden increase in prices is not expected," Yazdani said.

 

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Just now, screwball said:

Forex Market Impact

While the recent rise in currency rates in the Iranian forex market will not dramatically stir demand in the housing market, it will surely not prove inconsequential, the Comprehensive Housing Plan's deputy for research said.

"Even though soaring foreign exchange rate hikes will not create a 200% rise in demand in the housing market, it will not be without effect and its consequences will become evident in the first half of next year," Fardin Yazdani was also quoted as saying by ILNA.

 

Just now, screwball said:

"I am optimistic about the country's economic situation and ... I want to reassure our people that foreign currencies will not keep on going up," Rouhani said in a live interview with state television.

 

1 minute ago, screwball said:

Asked whether the current increase in currency rates has the potential to drive up home prices significantly, Yazdani reassured that "it will not single-handedly cause house prices to skyrocket , but its influence cannot be ruled out."

 

2 minutes ago, screwball said:

He believes the government will witness a recovery in the housing sector during the next fiscal year (starting March 21), but this will also entail an increase in home prices.

Needs to be a boost in spending....what will that be?

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The Iranian Privatization Organization says it will cancel the revocation of the privatization deal of the Telecommunications Company of Iran provided Mobin Trust Consortium (the majority shareholder of the company) pays off all its debts by January 9.

IPO announced last month it was calling off the TCI deal, which is said to be the largest case of privatization in Iran, due to the buyer’s failure to honor its commitments, IRNA reported.

Fifty plus one percent share of TCI was sold to Mobin Trust Consortium in 2009 at 78 trillion rials ($1.95 billion at market exchange rates). Twenty percent of the purchase money were paid in cash and the rest were to be paid in 16 installments of 4.84 trillion rials ($120 million) every six months. The consortium failed to make the installments.

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The government has allocated $2 billion to import 2,000 subway cars, the deputy interior minister for construction, urban and rural development said. “The move is in line with a bill passed by the parliament,” Houshang Khandan added, noting that the wagons will be imported in the second half of the upcoming fiscal year (to start March 20, 2017), IRNA reported. The government has put development of public transport on top of its agenda amid overcrowded urban areas and sprawling metropolises with snarling traffic and worsening pollution. On Monday, the parliament approved a bill that requires the government to increase the share of domestic companies in the manufacture of equipment used in rail projects, including wagons, to at least 85% by the end of the sixth five-year development plan (2016-21).  According to the new law, the government should “organize the foreign purchase of equipment in a way that exploitation of domestic capacity in manufacturing and services is maximized” and “technology is transferred into the country”. Domestic companies have been lately signing joint venture agreements with international firms to start manufacturing train wagons inside Iran and reduce reliance on imports.

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Iran’s media on Tuesday cheered as the Parliament voted to end a hefty housing project that President Hassan Rouhani had previously blamed for shooting up inflation to above 40 percent over the past years. 

The Parliamentarians in their debates over Iran’s Sixth Five-Year National Development Plan (2020-2025) voted to have Maskan Bank allocate the required funds for completing the remaining phases of ‘Mehr’ (kindness in Persian) housing project which was a main brainchild of former president Mahmoud Ahmadinejad (2005-2013).

No more new Mehr houses should be built, the MPs made it clear through an overwhelming approval. The move is already seen as significant for releasing huge amounts from the annual national development budgets that should have otherwise been spent on the scheme that had drawn serious criticisms by Rouhani’s government.   

“Mehr Housing Now History,” wrote Arman Emrooz in an article on its front page.  “Goodbye Mehr Housing,” wrote another daily – Jam-e Jam. Sharqnewspaper described Mehr housing as a “burden” for Iran’s economy.

“Finally, the fate of a heritage of the 10th government [of former president Mahmoud Ahmadinejad] was determined,” wrote Etemad newspaper. “The 11th government [of President Hassan Rouhani] had inherited lots of unfinished projects with huge debts that still needed to be settled. More importantly, this government had to respond to the shortcomings of its predecessor while it was not involved in anything related to them.”

“The End of Ahmadinejad’s Mehr,” wrote Sharq newspaper on its front page on Tuesday.   “Mehr Housing Becomes History,” wrote Arman Emrooz newspaper on its front page.  “Seal of Termination on Mehr Housing,” wrote Aftab-e Yazd newspaper in a front-page article.  

The target of the project – which started in 2007 – was to erect 17 new cities and some 1.5 million housing units to poor families in face of rising land and apartment prices.

Accordingly, billions were withdrawn from the Central Bank of Iran (CBI) upon orders by the government to push the project forward.

The CBI was even ordered by the government to print money to fund the scheme, what eventually led to a rise in the monetary base and a runaway inflation, as reported by Ebtekar newspaper.

Estimates show that the banks had doled out loans totaling above $10.2 billion to applicants as of January 2011. 

However, signs of the project’s failure emerged from early phases when the public failed to welcome it as desired. 

This was due to the fact that the Mehr housing blocks had been mostly constructed with substandard designs and materials in remote areas with poor – or even non-existing –infrastructure facilities.    

Other problems emerged later when developers found the project unprofitable as a result of skyrocketing inflation and began to leave many housing units half-complete.

Furthermore, inflation in the real estate market proved profitable for racketeers who bought off units using complicit applicants as intermediaries, then sold them at much higher prices, as reported by the media.

This eventually led to a nine-fold increase in prices of houses and pushed up inflation already deteriorated as a result of sanctions against the country. 

Iran's President Hassan Rouhani has  already described that Mehr housing project as one of the largest hurdles to the country's economy.

The vote by the Parliamentarians was welcomed by the media for its anticipated effect on removing a huge financial burden on the government of President Hassan Rouhani. 

Rouhani, himself, had emphasized soon after taking office that the Mehr housing scheme was one of the largest hurdles to Iran’s economic recovery. He told the nation in a televised address on the occasion of his first 100 days in office that the project was responsible for 40 percent of Iran’s liquidity.

The significance of the Parliament’s vote becomes further clear when considering that the amount that Ahmadinejad’s government had allocated for the project was higher than the collective development budgets for several past years of Rouhani’s tenure, wrote shafaf.ir news website.   

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TEHRAN, Jan. 02 (MNA) – Iran’s Deputy FM Sarmadi said Mon. Foreign Ministry is planning to launch an economic data bank for developing economic cooperation with the world by March.

Morteza Sarmadi told IRNA that the inauguration of the data bank will pursue the two objectives of developing further economic cooperation with various countries in the world and establishing instant contact with foreign companies.

“The economic data of all countries in the world will be easily accessible to all economic activists in Iran,” he added.

Sarmadi went on to add, “this bank will become the most important communication hub among all Iranian businesspersons through which 140 Iranian embassies and consulates can easily obtain their required information in any country they are.” 

Sarmadi expressed hope that the data bank would become operational by the end of the current Iranian year (March 20), so that the country’s economic actors could have easy access to information necessary for their trade and economic activities. 

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Gov't main approach aims to restore economic stability, social trust

Tehran, Jan 3, IRNA – President Hassan Rouhani said on Tuesday that his administration's main approach aims to restore social trust and economic stability.

 

He made the remarks in a meeting with members of Majlis Commission on Planning and Budget to review various topics including government's efforts to develop ties with outside world and advancement of the Joint Comprehensive Plan of Action (JCPOA), management of currency market and carrying out development plans in the deprived areas. 

Appreciating Majlis for close cooperation with the government, Rouhani said that reinforcing national trust and restoration of economy was one of the main objectives of the government over the past three years.

Creating unrest and widening social gaps in the society are detrimental to national trust, Rouhani said, noting that the government has done its best to restore confidence to economy and help the people lead a lively life.

He further noted that requirement for public participation in the economic and political activities is transparency of information.

If the nation receives information on their rights transparently, they will support their country's progress and prosperity, he said, noting that in case of misappropriation of public funds, public trust will be damaged.

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Now you cannot tell me that the delete zeros was not discussed as part of this meeting...

He made the remarks in a meeting with members of Majlis Commission on Planning and Budget to review various topics including government's efforts to develop ties with outside world and advancement of the Joint Comprehensive Plan of Action (JCPOA), management of currency market and carrying out development plans in the deprived areas. 

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Iraq keen on enhanced trade ties with Iran: Official

Baghdad, Jan 3, IRNA – Iraqi deputy trade minister said on Tuesday that Iraqi government is willing to develop commercial and economic relations with Iran and cooperate with Iranian firms to provide necessary needs of the Iraqi nation.

 

Walid al-Helou made the remarks in a meeting with Iranian trade and economic delegation led by deputy minister of industry, mines and trade Mojtaba Khosrotaj.

He said that Iran is a major country with long borders with Iraq and that the Iraqi government is willing to upgrade trade ties and economic cooperation with the Islamic Republic of Iran.

'For the same reason, we are seeking broader economic relations with Iran,' he said.

He said that Iraq is planning to initiate good commercial and economic ties with all neighboring states and Iran, in particular.

The Iraqi official further noted that Iranian delegation comprising private and state-run sectors' activists held talks with the Iraqi minister of industries and mines and caretaker of trade ministry and a number of Iraqi economic activists.

Al-Helou further noted that he discussed trade ties and obstacles with the Iranian deputy minister of industries, mines and trade on Monday.
8072**1416

[markb57]

come on Majlis Commission on Planning and Budget! Drop the zeros!!!!

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The housing sector's share in the Iranian annual budget has garnered mixed reactions from members of the Majlis Civil Affairs Committee.

While some believe the share of the housing sector in 2016-17 will be enough if it is realized in full, others warn about gloomier days for the already beleaguered sector.

A number of committee members spoke to ICANA, the official news service of the parliament, to offer views on the polarizing subject. In total, 8.14 trillion rials ($206.9 million) have been considered for the housing sector, which constitute less than 10% of the total budget allocated to the  Ministry of Roads and Urban Development.

The committee's spokesman criticized President Hassan Rouhani's neglect of the housing sector.

"If the government's proposed budget regarding the housing sector is approved unchanged, the sector will undoubtedly face worse conditions during the next year," Sadif Badri added.

Noting that the housing sector has received the least amount of capital in the annual budget, he added that the government needs to pay more attention to it for energizing the sector.

"Unfortunately, a quick look at the annual budget of 2017 shows no positive aspects about the housing sector," he said.

Another member of the committee called the budget share "meager", saying that with this share, the oft-promised boom in the beleaguered sector would be unimaginable.

"If [more] funds are not injected into the housing sector, it would find itself plagued by a variety of problems and will not be able to exit recession," Majid Kianpour added, stressing that it is vital for the housing sector's share in the annual budget to increase.

The lawmaker added that the Majlis Civil Affairs Committee will push to improve the housing share in the budget.

On the other hand, Seyyed Ahsan Alavi, a committee member, said if the funds that have currently been considered for the housing sector are fully allocated, the sector will "experience a tangible growth".

He believes the government will witness a recovery in the housing sector during the next fiscal year (starting March 21), but this will also entail an increase in home prices.

"Inciting demand in the housing sector will be made possible by providing mortgages and allocating subsidies," he said. "The exit of the housing sector from recession could have a 20-25% positive effect on the economy and that is why the government must focus its energies on this goal."

Fund Allocation in Disarray  

Another member of the parliamentary committee said the share of the housing sector in the budget is "sufficient for our needs", as his main concern lies elsewhere.

"A significant part of the budget for the current fiscal year has yet to be allocated and this concern is also valid for next year," Mohammad Mehdi Eftekhari added.

The MP stressed that under the current circumstances, policymaking carries more weight than fund allocation.

"When the government deems the housing sector's share in the annual budget to be enough but is unable to map out a clear blueprint for the sector and outline a plan to allocate the funds, then there is cause for worry," he said.

This comes as the housing sector has not had a good start in winter.

Hesam Oqbaei, the head of Tehran Association of Realtors, announced that the number of residential deals nationwide halved during the early days of winter.

"In the first 11 days of the current month [21-31 December], 18,149 home sales were registered in the country," Oqbaei was quoted as saying by Banker.ir. "That is while the figure for the corresponding period last year stood at 34,000, which shows an almost 50% decrease. It can be said that we have experienced a return to recession."

The official notes that this decline has taken place while it was thought that a growth in home sales in the first eight months of the year would extend to the whole country.

Forex Market Impact

While the recent rise in currency rates in the Iranian forex market will not dramatically stir demand in the housing market, it will surely not prove inconsequential, the Comprehensive Housing Plan's deputy for research said.

"Even though soaring foreign exchange rate hikes will not create a 200% rise in demand in the housing market, it will not be without effect and its consequences will become evident in the first half of next year," Fardin Yazdani was also quoted as saying by ILNA.

Major foreign currencies, e specially the US dollar, gained significantly against the rial in recent weeks before losing some ground later.

President Hassan Rouhani sought to reassure Iranians on Sunday that the government would work to protect market stability after the country's currency fell to a record low last week.

"I am optimistic about the country's economic situation and ... I want to reassure our people that foreign currencies will not keep on going up," Rouhani said in a live interview with state television.

Unveiled two years ago, the Comprehensive Housing Plan drawn up by the government seeks to provide all low-income groups with housing by 2025. Acting as a roadmap for the governments, it outlines the obligations of the governments in providing housing for different social classes.

Asked whether the current increase in currency rates has the potential to drive up home prices significantly, Yazdani reassured that "it will not single-handedly cause house prices to skyrocket , but its influence cannot be ruled out."

"Either way, the housing sector is now facing an accumulation of demand as a result of years of stagnancy and now with the rise in money supply, the cash flow could end up in the housing market if not directed to suitable channels," he added.

Noting that consumers and investors exert influence on the housing market, the official said there is currently enough capital in the market, but is blocked in various sectors or flowing toward the gold and currency markets.

"Therefore, as long as stagnancy reigns over the economy, a sudden increase in prices is not expected," Yazdani said.

[screwball]

Even though soaring foreign exchange rate hikes will not create a 200% rise in demand in the housing market, it will not be without effect and its consequences will become evident in the first half of next year,"

[screwball]

De said the airline had recorded an 80% average load factor on the route with strong forward bookings trend, especially toward Norouz (Iranian New Year starting March 21) celebrations in March, New Strait Times reported.

march 21 and march 22 start of financial year! 

[screwball]

The Iranian Privatization Organization says it will cancel the revocation of the privatization deal of the Telecommunications Company of Iran provided Mobin Trust Consortium (the majority shareholder of the company) pays off all its debts by January 9.

IPO announced last month it was calling off the TCI deal, which is said to be the largest case of privatization in Iran, due to the buyer’s failure to honor its commitments, IRNA reported.

Fifty plus one percent share of TCI was sold to Mobin Trust Consortium in 2009 at 78 trillion rials ($1.95 billion at market exchange rates). Twenty percent of the purchase money were paid in cash and the rest were to be paid in 16 installments of 4.84 trillion rials ($120 million) every six months. The consortium failed to make the installments.

 

jan 9th?