Iranian Rial

[screwball]

Lawmakers voted on Saturday for the government to earmark 375 trillion rials ($9.91 billion) for cash subsidies in the new Iranian year (to start March 21, 2017).

The sum is only sufficient to pay 68 million Iranians while 77 million people are on the list of cash subsidy recipients.

The parliamentary move suggests that the government has to either narrow the list by 9 million people or earmark 105 trillion rials ($2.77 billion) out of the budget for development projects to cash handouts, the Persian daily Etemad reported.

Government Spokesman Mohammad Baqer Nobakht said on Saturday that 4,853,386 people have been removed from the list of cash subsidies recipients as of January 20.

As part of the “Subsidy Reform Plan”, the administration of former president Mahmoud Ahmadinejad removed subsidies on food and energy in 2010 and instead paid 455,000 rials ($11.9) to all Iranians on a monthly basis.

The administration of President Hassan Rouhani has kept the plan it inherited from the previous government, albeit reluctantly amid financial constraints exacerbated by plummeting oil revenues.

[screwball]

Hmmmm.voting on a Saturday...

[screwball]

The Iranian Parliament finalized on Sunday the budget for the new Iranian year that starts on March 21.  A total of 160 lawmakers voted in favor, 19 voted against and four MPs abstained to pass a budget amounting to 11.5 quadrillion rials ($305 billion), IRNA reported.

The budget includes 3.98 quadrillion rials ($90.5 billion) earmarked as "general revenues" in addition to a whopping 8 quadrillion rials ($211 billion) to fund state companies, institutions and banks. The parliament-approved budget needs the final endorsement of the Guardians Council—the body in charge of ascertaining the constitutional and Islamic nature of all laws—before it becomes a law.

President Hassan Rouhani submitted the budget bill to parliament early December.

 

wonder if new budget has new rate like suggested in article last year

[screwball]

Lawmakers passed a measure on Sunday, based on which all banks must conduct their business under the watchful eye of the Supreme Audit Court.

All government-run entities are also required to enlist their earnings and expenses with the treasury under the supervision of SAC.

As part of reviewing expenses in the 2017-18 budget, MPs approved Clause B of Article 21 of the law –which consists of three clauses–and replaced Clause A with Article 19 of the sixth five-year development plan, reports IBENA.

The clause included another subsection decreeing that licensed government and non-government banks were not allowed to pay interest or open a backup account.

Article 19 of the development plan asserts that excluding other legal commitments of banks and credits institutions in line with using their resources during the plan regarding the allocation of cheap loans, will depend “on the provision of the difference in the annual budget”.

In July, the Money and Credit Council approved a 15% interest rate previously agreed upon by CEOs of major banks.

Clause B of Article 21, which was approved by the parliament, states that all organizations subject to the first subsection of Clause A are “legally bound to engage in all activities regarding the receipt or payment of their income and expenses through the treasury under the supervision of the Supreme Audit Court.”

The collection of all resources and expenditure s must be based on legal decrees and any action to the contrary would be deemed expropriation of public assets, it notes, adding that “this provision does not cancel out the duties of Supreme Audit Court, which have been assigned to the council in other laws”.

Article 21 of the annual budget law contains a third provision that was left untouched, which states that all executive organizations outside the jurisdiction of the Public Audit Law that also have earnings “are bound to engage in and declare all their financial proceedings through the accounts opened in the treasury”.

The provision also obligates the Ministry of Economic Affairs and Finance to ensure the authenticity of adherence to regulations in the way these organizations, except for the private sector and cooperatives, have made their earnings and expenditure and “in case of any violations or infringements, report it to related bodies.”

The ministry is also bound by this provision to draft an annual report to the Budget and Planning Organization of Iran.

 Other Measures

Members of parliament also reviewed Article 20 of the annual budget law, approving one of its provisions that allows the government to attract and enact investment and collaboration deals with the public sector “to facilitate the plan’s financing to acquire capital with economic and fiscal justifications” with highest priority given to unfinished projects.

Furthermore, MPs obligated as part of the same article the creation of “an electronic market for construction projects and infrastructure investments” in one month from the time of the regulation’s approval.

The organization has also been mandated to introduce and publish details of 50 to 100 independent plans or projects in the aforementioned system within the same period.

Separately, Majlis Economic Commission convened under its chairman, Mohammad Reza Pour-Ebrahimi, and CBI Governor Valiollah Seif, and announced the scheme that completely waives late-payment penalties for loans under 1 billion rials ($30,840) on condition that defaulters repay the original amount.

In a talk with ICANA, the official news website of the Iranian Parliament, Seif said the penalty waiver plan faces “limitations” as banks do not possess enough assets to execute it, adding that a decision was made to prioritize forgiving penalties for loans of under 100 million rials ($3,084).

In February, the parliament voted to extend the penalty waiver for loans under 1 billion rials for the coming fiscal year, too. According to the measure, all fines and penalties pertaining to the interest on loans under 1 billion rials will be forgiven for debtors who return the principal amount of their loans to banks in the next fiscal year.

The interest on loans will be reimbursed to lenders from the revaluation of foreign exchange resources of CBI and the fines will be forgiven. The measure is in line with increasing the lenders’ capital, recapitalizing state-owned banks and settling government debts.

[screwball]

Economy, Business And Markets

Monday, March 06, 2017

CBI: Smaller Banknotes Coming 

 

The Central Bank of Iran plans to print banknotes in smaller sizes, the director of CBI’s Office for Banknote Issuance said.

“CBI is also working on new designs for 50,000-rial and 100,000-rial banknotes,” Fars News Agency also quoted Masoud Rahimi as saying on Saturday.

The central bank last week unveiled a new version of 10,000-rial banknotes, which is smaller than the current notes, during President Hassan Rouhani’s visit to the bank.

The central banker also said that printing expenses has declined by 50% during the current Iranian year (ends March 20), due to CBI’s measures to promote electronic banking services in recent years.

Majlis on Saturday permitted CBI to issue new traveler checks for the next Iranian year.

smaller? Yeah baby

[screwball]

Told you good news happens on a Monday and or Tuesday!

[WheresmyRV?]

Lower denoms coming! 

[screwball]

Lawmakers passed a measure on Sunday, based on which all banks must conduct their business under the watchful eye of the Supreme Audit Court.

All government-run entities are also required to enlist their earnings and expenses with the treasury under the supervision of SAC.

As part of reviewing expenses in the 2017-18 budget, MPs approved Clause B of Article 21 of the law –which consists of three clauses–and replaced Clause A with Article 19 of the sixth five-year development plan, reports IBENA.

The clause included another subsection decreeing that licensed government and non-government banks were not allowed to pay interest or open a backup account.

Article 19 of the development plan asserts that excluding other legal commitments of banks and credits institutions in line with using their resources during the plan regarding the allocation of cheap loans, will depend “on the provision of the difference in the annual budget”.

In July, the Money and Credit Council approved a 15% interest rate previously agreed upon by CEOs of major banks.

Clause B of Article 21, which was approved by the parliament, states that all organizations subject to the first subsection of Clause A are “legally bound to engage in all activities regarding the receipt or payment of their income and expenses through the treasury under the supervision of the Supreme Audit Court.”

The collection of all resources and expenditure s must be based on legal decrees and any action to the contrary would be deemed expropriation of public assets, it notes, adding that “this provision does not cancel out the duties of Supreme Audit Court, which have been assigned to the council in other laws”.

Article 21 of the annual budget law contains a third provision that was left untouched, which states that all executive organizations outside the jurisdiction of the Public Audit Law that also have earnings “are bound to engage in and declare all their financial proceedings through the accounts opened in the treasury”.

The provision also obligates the Ministry of Economic Affairs and Finance to ensure the authenticity of adherence to regulations in the way these organizations, except for the private sector and cooperatives, have made their earnings and expenditure and “in case of any violations or infringements, report it to related bodies.”

The ministry is also bound by this provision to draft an annual report to the Budget and Planning Organization of Iran.

 Other Measures

Members of parliament also reviewed Article 20 of the annual budget law, approving one of its provisions that allows the government to attract and enact investment and collaboration deals with the public sector “to facilitate the plan’s financing to acquire capital with economic and fiscal justifications” with highest priority given to unfinished projects.

Furthermore, MPs obligated as part of the same article the creation of “an electronic market for construction projects and infrastructure investments” in one month from the time of the regulation’s approval.

The organization has also been mandated to introduce and publish details of 50 to 100 independent plans or projects in the aforementioned system within the same period.

Separately, Majlis Economic Commission convened under its chairman, Mohammad Reza Pour-Ebrahimi, and CBI Governor Valiollah Seif, and announced the scheme that completely waives late-payment penalties for loans under 1 billion rials ($30,840) on condition that defaulters repay the original amount.

In a talk with ICANA, the official news website of the Iranian Parliament, Seif said the penalty waiver plan faces “limitations” as banks do not possess enough assets to execute it, adding that a decision was made to prioritize forgiving penalties for loans of under 100 million rials ($3,084).

In February, the parliament voted to extend the penalty waiver for loans under 1 billion rials for the coming fiscal year, too. According to the measure, all fines and penalties pertaining to the interest on loans under 1 billion rials will be forgiven for debtors who return the principal amount of their loans to banks in the next fiscal year.

The interest on loans will be reimbursed to lenders from the revaluation of foreign exchange resources of CBI and the fines will be forgiven. The measure is in line with increasing the lenders’ capital, recapitalizing state-owned banks and settling government debts.

[screwball]

Just now, screwball said:

The interest on loans will be reimbursed to lenders from the revaluation of foreign exchange resources of CBI and the fines will be forgiven.

And again

[screwball]

Economy, Domestic Economy

Monday, March 06, 2017

MPs Cap Executive Pay at $3,700 Per Month

 

Members of the Iranian Parliament killed their newly-passed bill on executive salaries on Saturday and once again referred their original proposal to the Guardians Council.

On Wednesday, lawmakers had approved a bill allowing for a 60% salary hike for top executives and experts working in underprivileged and border areas.

The motion provoked an uproar, at the center of which was former parliamentarian Ahmad Tavakkoli. He slammed the move in a statement by saying, “You did a great job by rubbing salt into the wound of people”.

Referring to the media frenzy of June 2016 over “astronomical salaries”, Tavakkoli said Iranians hate the rent-seeking and insatiable desire of officials.

The drama began when the paychecks of top managers at banks and other companies were leaked on the social media, showing their salaries to be dozens of times the average monthly income of a white-collar worker.

Tavakkoli compared the proposed monthly salary cap of 240 million rials ($6,347) with the minimum salary of workers who receive 8,120,000 rials ($214.7) per month and slammed its “unjust” nature.

“The words ‘executive’ and ‘up to 60% rise’ were added by the Guardians Council to the parliament’s original proposal,” said Parliament Speaker Ali Larijani on Saturday.

“According to Article 35 of the Law on Management of State Services of 2007, a CEO’s pay should not be more than twice that of the worker. The members of Majlis Planning and Budget Commission wanted to place a cap on such salaries. This does not mean government executives should be paid this much,” the Persian daily Jahan-e Sanat quoted him as saying.

Referring to the maximum monthly pay of 140 million rials ($3,702) to executives voted for by the parliament, Larijani noted that according to the preliminary legislation, which still needs the final approval of the Guardians Council, executive salaries should range between 100 million and 140 million rials ($2,644-3,702). It also suggests that the hike in salaries should not exceed 30%.

The parliament’s proposal will be referred to the Expediency Council, if the Guardians Council rejects it for the second time.

The move is part of the parliament’s review of the sixth five-year development plan (2017-22).

[Freedomwish]

4 hours ago, screwball said:

Told you good news happens on a Monday and or Tuesday!

Yup, you did lol 

[Freedomwish]

13 hours ago, millionaire in training said:

This is what we're looking at ????

.30 or .40 ?????

What happened to 1.00 + ?????

MIT, at the moment I'd say let's have low expectations during this crazy ride and let's hope we'd be extremely shocked and surprised should the rate pops off higher than anyone would anticipate.....more whiskey in the meantime, cheers!! 

[screwball]

Iran’s parliament ratifies budget bill for next year

Tehran, March 5, IRNA – Majlis (Iranian parliament) on Sunday approved the country’s budget for the next Iranian year of 1396 (March 2017-March 2018).

 

The bill was ratified with 160 for votes, 19 against and four abstentions.  

The figure is to be divided in public expenses and budget for ministries and state run organizations.

President Hassan Rouhani had submitted the bill to the parliament on Sunday, December 9, 2016.

The total amount of Iran’s annual budget is fixed at 11,527 trillion rials. Each dollar has been considered 33,000 rials in the budget bill.

2050**2050

[screwball]

1 minute ago, screwball said:

The total amount of Iran’s annual budget is fixed at 11,527 trillion rials. Each dollar has been considered 33,000 rials in the budget bill.

Interesting comment...very specific! For us maybe?

[screwball]

In one of those articles I posted on the weekend Iran claimed they are number 1 in oil reserves, interestin always though it was Iraq? Time will tell? The big question is can Iraq and Iran be valued at the same can we have three countries on a rate greater than 1:1? 

[screwball]

The economy ministers of Iran and France discussed expansion of relations between their central banks during a meeting in Tehran on Saturday.

“Iran and France have taken good measures for normalization of commercial and banking relations ... Two Iranian bank branches [Tejarat and Melli] in France have established ties with French lenders … Today we discussed the reestablishment of ties between the central banks of the two countries,” Economy Minister Ali Tayyebnia told reporters in a press conference after the meeting.

Tayyebnia was also quoted as saying by the Economy Ministry’s website that Central Bank of Iran’s Governor Valiollah Seif has been invited to visit the Bank of France to discuss bilateral ties.

“Iran has taken efficient measures to boost the banking system and meet the international anti-money laundering standards,” he said.

“We expect France and European countries to support the removal of Iran’s name from FATF’s blacklist.”

French Economy Minister Michel Sapin also said his country favors normalization of banking relations with Iran.

“We can’t work on developing our economic relations, if we don’t also normalize our banking relations,” AFP quoted him as saying.

The French minister noted that his ministry plans to take new measures to finance French firms’ trade deals with Iranian partners, “though the plan has not yet finalized in the ministry”.

Bank Melli Iran and Tejarat Bank are Iranian lenders with branches in Paris. Both lenders have obtained the permission to operate from the local regulator.

Earlier, Tejarat Bank informed Financial Tribune that it has established correspondent relations with three French banks, including the state-owned La Banque Postale.

 Reinsurance Ties

In another meeting on Saturday, Victor Peignet, chief executive of the French reinsurer SCOR, visited the Central Insurance of Iran’s headquarters in Tehran.

Peignet expressed SCOR’s eagerness to expanding cooperation with Iranian insurance industry, which requires close collaboration with the Central Insurance of Iran, CII’s website reported.

Abdolnasser Hemmati, CII’s president, also pointed to close collaborations with the French reinsurer in previous years, hoping for the revival of ties in line with the nuclear deal Iran reached with world powers.

Back in November, the two officials had a meeting in London, where Hemmati urged action on solving the issues regarding sanctions clauses related to insurance contracts, emphasizing that Iran will not accept any conditions beyond the nuclear deal with the six world powers. SCOR also expressed readiness to hold training courses for Iranian insurance managers on risk management and pricing policies.

[screwball]

1 minute ago, screwball said:

“Iran has taken efficient measures to boost the banking system and meet the international anti-money laundering standards,” he said.

Not much to say really....go the euro

[screwball]

 

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France says will urge banks to cooperate with Iran

Tehran, March 5, IRNA – French Minister of Economy Michel Sapin said he will do his best to urge French banks including the country’s central bank to cooperate with Iran.

 

The French minister was talking to reporters after a meeting with his Iranian counterpart Ali Tayyebnia on Saturday.

French companies are interested in joint cooperation with Iranian companies, the official added.

Iranian finance minister said also that Joint Comprehensive Plan of Action prepared the ground for cooperation between Tehran and Paris in economic and investment fields.

“Iranian banks have started work in France and we are discussing revival of relations between the central banks of Iran and France,” he noted.

Meanwhile, Tayyebnia said, “French finance minister invited Head of Central Bank of Iran Valiollah Seif to pay a visit to Paris and explore ways of promotion of ties with France’s central bank.”

“We have talked Iran’s effective steps for reforming the banking system and establishment of anti-money laundering regulations,” the economy minister added.

He said, “It is expected that Iran get off the FATF blacklist in June with support from the European countries including France.”

[screwball]

Just now, screwball said:

It is expected that Iran get off the FATF blacklist in June with support from the European countries including France.”

June....nice Garry!

[Freedomwish]

13 hours ago, screwball said:

Interesting comment...very specific! For us maybe?

"Each dollar has been considered 33,000 rials in the budget bill."

If dropping the three zeros here, at 0.33 cents I'd be cool with it 

13 hours ago, screwball said:

In one of those articles I posted on the weekend Iran claimed they are number 1 in oil reserves, interestin always though it was Iraq? Time will tell? The big question is can Iraq and Iran be valued at the same can we have three countries on a rate greater than 1:1? 

It waits to be seen, indeed we all would hope at least 1:1 

[screwball]

Americans can now open bank accounts in Iran

Mon Mar 6, 2017 6:5PM

1. Home
2. Iran
3. Economy

The exterior of the Central Bank of Iran (CBI). 

Iran says it has been informed by Washington that US nationals can have bank accounts in the Islamic Republic.  

The announcement was made by a top official at the Central Bank of Iran (CBI), as reported by the domestic media.

Hamid Qanbari, the deputy director of the CBI for supply of foreign currencies, told a seminar in Tehran that the Islamic Republic had realized about the move through a recent announcement by the US Treasury Department.    

Qanbari added that the Treasury’s Office of Foreign Assets Control (OFAC) had recently clarified that Americans residing in Iran can have bank accounts in the country.

He emphasized that this was legally binding and enjoyed the support of the US administration. 

For the past decades, Iran has been subject to a series of primary sanctions imposed by the US that include tough restrictions on banking activities and the Islamic Republic’s access to the dollar.

Those restrictions were intensified as a series of bans were approved against Iran as a result of disputes over the country's nuclear energy activities.  Those bans were lifted in early 2016 after the country reached a deal with the five permanent members of the Security Council plus Germany.  However, US primary sanctions still remain.

To the same effect, many companies - specifically European enterprises – that are wary of US punitive measures still see Washington’s restrictions against doing business with Iran as serious obstacles.

Details of OFAC’s authorization for US citizens to have bank accounts in Iran are still not known.  Nevertheless, it is expected to be a groundbreaking development that could help facilitate business with Iran specifically if it is expanded to include companies, as well.

[screwball]

Malaysia Plans to Increase LPG Imports from Iran: Official 

News ID: 1347545 Service: Economy 

 March, 06, 2017 - 16:55 

TEHRAN (Tasnim) – Wiratmaja Puja, Indonesia’s Director General of Oil and Gas at the Energy and Mineral Resources Ministry, said Jakarta plans to increase liquefied petroleum gas (LPG) imports from Iran. 

“We wish to add the amount of imported LPG from Iran at a discounted price, if possible,” Wiratmaja said as cited by Tempo news website on Monday.

He added that the Indonesian government is seeking to double its import volume from 500,000 tons to 1 million tons of LPG for domestic needs.

Back in December, Indonesia’s Pertamina Spokeswoman Wianda Pusponegoro said the energy company is expected to sign an agreement to import Iranian liquefied petroleum gas (LPG) in 2017.

Pertamina plans to import up to 12 cargoes, each of which contains 44,000 tons of gas, in 2017, she added.

[screwball]

Americans can now open bank accounts in Iran

Iran says it has been informed by Washington that US nationals can have bank accounts in the Islamic Republic.

The announcement was made by a top official at the Central Bank of Iran (CBI), as reported by the domestic media.

Hamid Qanbari, the deputy director of the CBI for providing foreign currencies, told a seminar in Tehran that the Islamic Republic had realized about the move through a recent announcement by the US Treasury Department.    

Qanbari added that the Treasury’s Office of Foreign Assets Control (OFAC) had recently clarified that Americans residing in Iran can have bank accounts in the country.

He emphasized that this was legally binding and enjoyed the support of the US administration. 

For the past decades, Iran has been subject to a series of primary sanctions imposed by the US that include tough restrictions on banking activities and the Islamic Republic’s access to the dollar.

Those restrictions were intensified as a series of bans were approved against Iran as a result of disputes over its nuclear energy activities.  Those bans were lifted in early 2016 after the country reached a deal with the five permanent members of the Security Council plus Germany.  However, US primary sanctions still remain.  To the same effect, many companies - specifically European enterprises – that are wary of US punitive measures still see Washington’s restrictions against doing business with Iran as serious obstacles.

Details of OFAC’s authorization for US citizens to have bank accounts in Iran are still not known.  Nevertheless, it is expected to be a groundbreaking development that could help facilitate business with Iran specifically if it is expanded to include companies, as well.

[Freedomwish]

36 minutes ago, screwball said:

Americans can now open bank accounts in Iran

Mon Mar 6, 2017 6:5PM

1. Home
2. Iran
3. Economy

The exterior of the Central Bank of Iran (CBI). 

Iran says it has been informed by Washington that US nationals can have bank accounts in the Islamic Republic.  

The announcement was made by a top official at the Central Bank of Iran (CBI), as reported by the domestic media.

Hamid Qanbari, the deputy director of the CBI for supply of foreign currencies, told a seminar in Tehran that the Islamic Republic had realized about the move through a recent announcement by the US Treasury Department.    

Qanbari added that the Treasury’s Office of Foreign Assets Control (OFAC) had recently clarified that Americans residing in Iran can have bank accounts in the country.

He emphasized that this was legally binding and enjoyed the support of the US administration. 

For the past decades, Iran has been subject to a series of primary sanctions imposed by the US that include tough restrictions on banking activities and the Islamic Republic’s access to the dollar.

Those restrictions were intensified as a series of bans were approved against Iran as a result of disputes over the country's nuclear energy activities.  Those bans were lifted in early 2016 after the country reached a deal with the five permanent members of the Security Council plus Germany.  However, US primary sanctions still remain.

To the same effect, many companies - specifically European enterprises – that are wary of US punitive measures still see Washington’s restrictions against doing business with Iran as serious obstacles.

Details of OFAC’s authorization for US citizens to have bank accounts in Iran are still not known.  Nevertheless, it is expected to be a groundbreaking development that could help facilitate business with Iran specifically if it is expanded to include companies, as well.

SAY WHAAAAAAAAAAAT?!! 

[blueskyline]

36 minutes ago, screwball said:

Americans can now open bank accounts in Iran

Iran says it has been informed by Washington that US nationals can have bank accounts in the Islamic Republic.

The announcement was made by a top official at the Central Bank of Iran (CBI), as reported by the domestic media.

Hamid Qanbari, the deputy director of the CBI for providing foreign currencies, told a seminar in Tehran that the Islamic Republic had realized about the move through a recent announcement by the US Treasury Department.    

Qanbari added that the Treasury’s Office of Foreign Assets Control (OFAC) had recently clarified that Americans residing in Iran can have bank accounts in the country.

He emphasized that this was legally binding and enjoyed the support of the US administration. 

For the past decades, Iran has been subject to a series of primary sanctions imposed by the US that include tough restrictions on banking activities and the Islamic Republic’s access to the dollar.

Those restrictions were intensified as a series of bans were approved against Iran as a result of disputes over its nuclear energy activities.  Those bans were lifted in early 2016 after the country reached a deal with the five permanent members of the Security Council plus Germany.  However, US primary sanctions still remain.  To the same effect, many companies - specifically European enterprises – that are wary of US punitive measures still see Washington’s restrictions against doing business with Iran as serious obstacles.

Details of OFAC’s authorization for US citizens to have bank accounts in Iran are still not known.  Nevertheless, it is expected to be a groundbreaking development that could help facilitate business with Iran specifically if it is expanded to include companies, as well.

This ? Is a Bomb Shell !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Thanks Screwball