Iranian Rial

[screwball]

The Central Bank of Iran has updated its list of bureaux de change officially allowed to operate in the market. According to the latest update by CBI on March 4, a total of 419 exchange houses have obtained a license and are authorized to operate, IBENA reported. The previous update in the list came on March 2, 2016, which put the number of licensed bureaux de change at 396. According to a CBI directive, moneychangers in Tehran, Karaj, Isfahan, Shiraz, Mashhad, Ahvaz and Tabriz require a minimum capital requirement of 40 billion rials ($1.07 million) to establish operations while for all other cities, the amount stands at 20 billion rials ($500,000).

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5 hours ago, pokerplayer said:

So are we still on cue for March 20th ? Sorry been gone for a few weeks and out of the loop.

   pp

Yeah pretty much I am allowing two weeks either side...march 21

[screwball]

News ID:189238

Publish Date: Sun, 12 Mar 2017 20:14:21 GMT

Service: Business

 

 

Iran preparing to receive third new Airbus

Iran said it expects to receive the third new Airbus aircraft later this week as part of a batch of 100 planes purchased from the European aviation giant.

Farhad Parvaresh, the managing director of Iran's national flag carrier Iran Air, was quoted by domestic media as saying that the process to receive the third Airbus — an A330 — had already started, Press TV reported.

The second plane — also an A330 — arrived in Tehran on Saturday. It flew to the capital's Mehrabad International Airport from the French city of Toulouse.

Iran Air announced that it had sent a flight crew to Toulouse to take delivery of the third plane. It added that the delivery could take place on Thursday.

Last January, Iran signed a deal worth $18 billion with Airbus to purchase 100 new planes including 46 A320 Family, 38 A330 Family, and 16 A350 XWB aircraft.

The first plane — an A320 — arrived in Tehran in January.

Last year, Iran also sealed another deal to purchase 80 new planes from US aviation company Boeing.

The deal — which involves 50 Boeing 737s and 30 777 airliners worth $16.6 billion — was Iran's biggest yet with an American company since the 1979.

Iran Air is also expected to seal an order for 20 turboprops from another European manufacturer ATR.

Most of Iran's aging fleet of 250 commercial planes were purchased before 1979, and as of June 2016, only 162 were operational, with the rest grounded due to lack of spare parts.

Airlines in Iran have been operating for decades on aging fleet of Boeing and Airbus airliners, plus some Russian planes bought or leased since the 1979 Islamic Revolution.

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Hyundai seals contract for €3b petro refining project in Iran

1. Economy

March 12, 2017

 

TEHRAN – South Korea’s Hyundai Engineering Company (HEC) signed a €3-billion contract with Iran’s Ahdaf Investment Company on Sunday for construction of the second phase of Kangan Petro Refining Complex in Iran’s southwestern Bushehr province.

The contract, which is in the form of an Engineering, Procurement, Construction and Financing (EPCF) Contract, was signed by the two sides’ representatives in Iran, Shana reported.

In the signing ceremony, Asghar Arefi, the managing director of Ahdaf (a subsidiary of Iran’s Oil Industry Pension Fund), who signed the contract, noted that with making €120 million of investment, the first phase of the complex has witnessed a 30 percent progress so far.

“The second phase includes building four plants for producing olefin, MEG, HD and LLD,” he said.

According to Arefi, 95 percent of the project’s finance will be provided by South Korean banks within nine months and when the financing is finalized the project will be immediately put into operation.

“The most important issue and the most difficult step after signing the contract would be finalization of financing agreements with banks and insurance institute of South Korea,” he noted. 

Kangan Petro Refining project is defined into two phases, phase 1 is construction of C2 recovery and fractionation plant and phase 2 includes building of ethane cracker and polymer plants; It is planned that the company’s products be consumed in local market and be exported.

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7 new petchem projects to come on stream

News ID: 3929970 - Sun 12 March 2017 - 10:29

Economy

TEHRAN, Mar. 12 (MNA) – An NPC official, while pointing to operation of six new petrochemical projects in the present Iranian year, said seven more plans will be inaugurated in the coming year (to begin March 21).

Director of Production Control in Iran's National Petrochemical Company (NPC) Alimohammad Bosaghzadeh recounted on major plans in the Iranian petrochemical industry for the next Iranian calendar year saying “since March 20, 2016, a total of six new plans officially became operational.”

“Sulfuric acid unit of Urmia Petrochemical Plant, low-density and heavy linear polyethylene of Mahabad and Lorestan complexes, urea and ammonia units of Shiraz Petrochemical Company, Phase 2 of Karoon complex as well as Persepolis Petrochemicals came on stream in the present year,” stressed the official asserting that the new projects had added a total of 3.1 million tons to the country’s output capacity for petrochemical and polymer products.

Bosaghzadeh also noted that at least seven new projects will become operational in the first half of the next Iranian calendar year adding “as such, low-density polyethylene unit of Kurdistan with an annual production capacity of 300 thousand tons, Phase 3 of Pardis Petrochemical Company with an output capacity of 1.755 million tons of urea and ammonia as well as Kaveh Methanol Petrochemicals with a capacity of 4.365 million tons per year will start working.”

“Moreover, four more new projects will be also implemented including ethylene glycol unit of Morvarid Petrochemical Company with an annual output capacity of 550 thousand tons, expansion polystyrene unit of Entekhab Petrochemical complex with a capacity of 250 thousand tons, Pars Persepolis Petrochemical plant as well as Phase 2 of Kavian Petrochemical Company with a capacity of one million tons of ethylene per year.”

Iran’s is now capable of producing about 62 million tons of petrochemical and polymer products per year though the figure is expected to hit over 120 million tons once the new projects begin operation.

HA/3929252

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) | Date: 12/03/2017 | Time: 15:23|

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Iran should cut protectionism, tariffs to join WTO: Expert

London, March 12, IRNA – If Iran intends to join the World Trade Organization, it should embark on reducing customs tariffs, rolling back protectionism and make its markets more competitive, an international investment advisor says.

 

“Iran’s unyielding protectionism, in case the country has an ambition for a WTO membership, is going to create hurdles on its way to achieve the goal,” Parham Gohari, co-founder of Frontier Partners, told the Islamic Republic News Agency (IRNA) during an interview on Saturday.

Gohari said that, instead of promoting protectionism, the Islamic Republic should work toward putting in place incentive policies and using concessions to prop up its domestic industries.

Iran can also move toward establishing common markets both in the Middle East and Asia, he said.

The co-founder of Frontier Partners also urged Iran to help enhance foreign investments in the country, saying the foreign investors should engage with Iran based on long-term objectives.

“Different sectors in Iran, including oil and natural gas, petrochemical industries, tourism, construction and car-making, tend to have high potentials for absorbing foreign investments,” Gohari said. 

Frontier Partners, the first and largest international professional firm provides consulting, transactions support and investment services to multinational corporations on their investment agenda with respect to the Iranian market.

2044**1771

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Iran, Oman sign banking cooperation MoU

Tehran, March 12, IRNA – Governors of Central Bank of Iran Valiollah Seif and his Omani counterpart Hamood Sangour al-Zadjali signed a memorandum of understanding (MoU) with the aim to boost banking cooperation between the two countries.

 

In a meeting here on Sunday, in addition to the governors of the both Central Banks, Deputy Foreign Minister of Oman Badr bin Hamad Albusaidi and representatives of a number of commercial banks of the two countries were present.

Seif said that political relations between the two countries are age-old, but their economic ties are not expanded as much as their political one.

He said that banking relations is a prerequisite for trade and economic ties, adding that such meetings will be held every six months between the two groups so that all possible problems and obstacles to be considered.

Governor of Omani Central Bank said that banking relations should reach the expected level, because diplomatic relations are desirable.

Hamood Sangour called on bankers of both countries to promote and boost bilateral ties.

He voiced Oman's interest to open bank branches in Iran, and said that Saderat and Melli banks had been active in Oman and 'now we expect Omani banks' activities in Iran'.

Deputy Foreign Minister of Oman Badr bin Hamad Albusaidi underlined his optimism to expand banking ties between the two countries and said that political relations between Iran and Oman is upon reciprocal confidence and banking cooperation may continue trade convergence between the two states.

He said that Oman is committed itself to establish banking and trade ties with Iran and try to remove every kind of obstacles on the way of cooperation.

Deputy Foreign Minister of Iran Morteza Sarmadi said that the two countries are forming their cooperation bases and undoubtedly in case of lack of banking ties, economic and trade activities could not reach a desirable level.

To fulfill such relations a lot of efforts should be done, including full removal of banking obstacles, Sarmadi said.

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Pakistani warships berth in Bandar Abbas- 3 hours ago

IRGC navy cmdr.: New president in US will have no impact on Iran’s global might- 3 hours ago

Commander: 2,100 cargo ships escorted by Iran’s warships in int'l waters- 4 hours ago

MP underlines Iran's active presence in Balkan region- 4 hours ago

MP: FM issues security warning for those intending to visit Turkey- 4 hours ago

Iran, Russia consider naval cooperation development- 4 hours ago

Protest held in Pakistan capital against Damascus bombings- 4 hours ago

Iran, Oman sign banking cooperation MoU- 5 hours ago

Iran FM, VP send letter to UN chief on urgency to deal with dust storms- 7 hours ago

Tehran, Muscat underline strengthening media diplomacy- 7 hours ago

All News

March 13, 2017

 

 

 

 

 

Code: 82460749 (5880427) | Date: 11/03/2017 | Time: 18:33|

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Iran, Finland form working group to solve banking problems

Sari, Mazandaran Prov., March 11, IRNA – Finnish Ambassador to Tehran Harri Kämäräinen said on Saturday that a working group comprising Iranian and Finnish banking governors as well as experts has been formed to look into ways of solving banking problems.

 

Talking to IRNA, Kämäräinen said the working group has been successful to solve a large portion of problems ahead of the inter-banking foreign exchange transactions.

He said the working group has shown promising progress in lifting the banking problems facing Iranian and Finnish banks and it seems that in the near future, the two sides will establish banking exchanges. 

He noted that in the post-JCPOA era, a good opening has been made in relations between Iran and the Netherlands and the visit of the president, foreign minister and a number of other Finnish ministers to Iran and of foreign minister and certain Iranian ministers to the Netherlands are among the most important political events in the post-JCPOA era.

“Furthermore, a large number of big Finnish companies, especially the companies cooperating with Iran in supply of basic materials and technology, resumed activity in the post-JCPOA era.”

He added that both Iran and Finland have had good political and commercial relations with each other since long time ago and their capacity allows further strengthening of the ties in the post-JCPOA era.

The diplomat said his country can put its forestry and sewage treatment experience at the disposal of Iran's northern Mazandaran Province, which is a province rich in forests, and such a cooperation can be well extended between the two sides’ agriculture and rangeland keeping universities.

[Freedomwish]

17 minutes ago, screwball said:

Exacta Mundo....

Si señor! 

[blueskyline]

Iran is set to do this within their self described "Resistance Economy" . Would this encourage other OPEC nations , other countries to follow ? We have seen Russia state they wanted to leave the dollar in future contracts and China call for a new World Currency. This is the first major oil producer to state and it appears take action to leave the dollar . I have to wonder was Iraq planned to compensate for these moves by these countries ?Furthermore. When I hear the words Resistance Economy . I think of a resistance war to keep from being taken over and defeated ...? Just questions and a thoughts .....

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Economy, Business And Markets

Monday, March 13, 2017

Iran, Finland Removing Banking Hurdles

 

Atask force comprising Iranian and Finnish bank executives and experts, which was formed to remove bilateral banking hurdles, has already made headway, said the ambassador of the Scandinavian nation to Iran.

“This task force has so far managed to remove a large part of the problems in the way of foreign exchange transactions between the banks of the two countries,” Harri Kamarainen also said in a talk with IRNA.

He called the progress made by the working group in clearing banking barriers “promising”, noting that the prospect of transactions between Iranian-Finnish banks in the near future looks close at hand.

The Finnish ambassador, who was in the northern city of Sari in the province of Mazandaran, added that establishing ties between the provinces of two countries is the way to go to increase trade ties.

According to Kamarainen, similar to Iranian provinces such as Zanjan and Kurdestan, Mazandaran should also expand ties with Finland at the local level.

“A significant number of major Finnish companies, especially companies active in providing raw material and technology, have restarted working with Iran” after the nuclear deal, he said.

[screwball]

7 hours ago, blueskyline said:

Iran is set to do this within their self described "Resistance Economy" . Would this encourage other OPEC nations , other countries to follow ? We have seen Russia state they wanted to leave the dollar in future contracts and China call for a new World Currency. This is the first major oil producer to state and it appears take action to leave the dollar . I have to wonder was Iraq planned to compensate for these moves by these countries ?Furthermore. When I hear the words Resistance Economy . I think of a resistance war to keep from being taken over and defeated ...? Just questions and a thoughts .....

100% agree.....my thoughts resistance against USD and move to back your currency with gold and oil...a return to the gold standard the only true way of measuring value. Fiat is about to die a slow and painful death!

[screwball]

, Business And Markets

Monday, March 13, 2017

Central Banks of Iran, Oman to Maximize Ties

 

The central banks of Iran and Oman have signed an agreement on Sunday to prepare the ground for expansion of banking ties at the Central Bank of Iran’s headquarters in Tehran.

Valiollah Seif, CBI’s governor, said banking relations between Iran and Oman are not fully normalized yet.

“This is a great opportunity for the two countries’ bankers, which could help boost commercial relations between the two countries,” CBI’s website quoted Seif as saying.

Hamoud bin Sangour al- Zadjali called for close cooperation between Omani Banks Association and Iran’s Association of Private Banks and Credit Institutions. Zadjali also called for Bank Melli Iran and Bank Saderat Iran to resume operations in Oman.

Representatives from the two countries’ commercial banks and foreign ministries attended the meeting.

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The budget law of the upcoming fiscal year (March 2017-18) has projected 1,150 trillion rials ($30.59 billion) in tax and customs revenues.

Bourse Press also quoted chairman of the Iranian National Tax Administration, Kamel Taqavinejad, as saying that to boost tax revenues in the coming year, INTA will focus on collecting tax arrears that stand at 130 trillion rials ($3.45 billion).   

Earlier in February, Taqavinejad said INTA had earned 810 trillion rials ($20.9 billion) in tax revenues since the beginning of the fiscal year.

“An aggregate of 1,010 trillion rials (about $26 billion) is projected to be earned from tax and duties by the yearend,” he said.

Last year’s tax revenues, excluding earnings from duties levied on goods and services, stood at 680 trillion rials ($17.6 billion).

“Tax revenues constitute 36% of the government’s total revenues and close to 50% of the current budget come from tax collections. Recovering unpaid taxes is INTA’s priority this year. Up until now, the administration has managed to collect nearly 135 trillion rials ($3.5 billion) in arrears,” he said.

About 60% of Iran’s economy do not pay tax, including 40% that are exempt from tax and 20% that evade tax payment. Tax evasion is estimated at 300 trillion rials ($7.7 billion) annually. According to Taqavinejad, value added tax and duties on goods and services account for half of tax revenues and the remaining 50% come primarily from direct taxation.

According to Economy Minister Ali Tayyebnia, as many as 500,000 taxpayers, including major producers and importers, pay around 150 trillion rials ($3.96 billion) as VAT every year. Taqavinejad said INTA pays over 600 trillion rials of VAT revenues to municipalities and 50 trillion to the Health Ministry for the Health Reform Plan.

The VAT Law took effect in the Iranian year to March 2009 and is being extended annually. VAT currently stands at 9% in Iran. The tax-to-GDP ratio in Iran stands at 7.3%, which should rise to around 11% as per the sixth five-year development plan (2017-22). Tax revenues account for 25-30% of GDP in developed countries.

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Investment in Iran rising: Slovakian envoy

Tehran, March 12, IRNA – Slovakian Ambassador to Iran Luber Mirgelian said opening of credit line worth 100 million euros during recent Tehran visit of his country’s officials indicates Slovakia's backing to investment in Iran.

 

In a meeting with Head of Iran-Slovakia Parliamentary Group Mehdi Farshadan on Sunday, the ambassador evaluated bilateral ties as positive, hoping that relations would further improve following the removal of sanctions and settlement of banking problems. 

Referring to the Islamic Republic’s role in the region, he welcomed augmentation of diplomatic shuttles, particularly further communications between the two countries’ parliamentary friendship groups.

Farshadan, for his part, referred to good ties between Iran and Slovakia, saying that excellent bilateral relations since the country’s independence are an appropriate ground for bolstering ties in various domains.

He also described removal of impediments such as facilitating visa issuance as a major contributor to boosting bilateral ties.

Expansion of mutual cooperation, especially in post-JCPOA era, is indicative of both sides’ good will for promoting ties, he said.

Joint Comprehensive Plan of Action (JCPOA) is the official title of the nuclear deal reached between Iran and world major powers in July 2015.

He also voiced Iran’s Majlis support to any move in line with using existing capacities for strengthening friendly cooperation. 

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an, Oman sign banking cooperation MoU

Tehran, March 12, IRNA – Governors of Central Bank of Iran Valiollah Seif and his Omani counterpart Hamood Sangour al-Zadjali signed a memorandum of understanding (MoU) with the aim to boost banking cooperation between the two countries.

 

In a meeting here on Sunday, in addition to the governors of the both Central Banks, Deputy Foreign Minister of Oman Badr bin Hamad Albusaidi and representatives of a number of commercial banks of the two countries were present.

Seif said that political relations between the two countries are age-old, but their economic ties are not expanded as much as their political one.

He said that banking relations is a prerequisite for trade and economic ties, adding that such meetings will be held every six months between the two groups so that all possible problems and obstacles to be considered.

Governor of Omani Central Bank said that banking relations should reach the expected level, because diplomatic relations are desirable.

Hamood Sangour called on bankers of both countries to promote and boost bilateral ties.

He voiced Oman's interest to open bank branches in Iran, and said that Saderat and Melli banks had been active in Oman and 'now we expect Omani banks' activities in Iran'.

Deputy Foreign Minister of Oman Badr bin Hamad Albusaidi underlined his optimism to expand banking ties between the two countries and said that political relations between Iran and Oman is upon reciprocal confidence and banking cooperation may continue trade convergence between the two states.

He said that Oman is committed itself to establish banking and trade ties with Iran and try to remove every kind of obstacles on the way of cooperation.

Deputy Foreign Minister of Iran Morteza Sarmadi said that the two countries are forming their cooperation bases and undoubtedly in case of lack of banking ties, economic and trade activities could not reach a desirable level.

To fulfill such relations a lot of efforts should be done, including full removal of banking obstacles, Sarmadi said.

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Tehran, Muscat ink banking MoU

News ID: 3931058 - Mon 13 March 2017 - 10:33

Economy

TEHRAN, Mar. 13 (MNA) – A cooperation agreement has been signed between central banks of Iran and Oman aiming to boost banking cooperation between the two sides.

A joint session between central banks of Iran and Oman as well as a number of commercial banks of the two countries was convened in Tehran where Governor of Central Bank of Iran (CBI) Valiollah Seif voiced satisfaction towards presence of Hamood bin Sangour bin Hashim Al Zadjali, Executive President of the Central Bank of Oman, as well as Sayyid Badr Hamad Al-Busaidi, Secretaries General of the Omani Ministry of Foreign Affairs adding “proper grounds now exist for dialogue between banks of the two sides, an issue which can lead to future cooperation.”

He noted pointed to the age-old history of political ties between the two sides though economic relations have remained undeveloped and require careful planning before they reach satisfactory levels.

He deemed banking ties as a prerequisite to economic and trade transactions expressing hope that the session could pave the path for expansion of banking relations and consequently for trade activities.

CBI governor suggested that similar sessions be held regularly every six months in a bid to probe into barriers to reinvigoration of relations.

Hamood bin Sangour, for his part, appreciated Valiollah Seif and deemed the meeting between Iranian and Omani bankers as a unique opportunity for baking transactions and development of cooperation; “banking ties need to reach expected levels since diplomatic relations are already appropriate.”

He went on to stress that singing of a Memoranda of Understanding (MoU) could improve conditions and capacities of bankers and private sectors could be exploited to this end.

The official pointed to Oman’s eagerness to open banking branches in Iran adding “Melli and Saderat banks of Iran have been active in Oman since past and we expect Omani banks to launch activities in Iran.”

Also at the meeting, Omani Deputy FM Sayyid Badr Hamad Al-Busaidi voiced optimism towards future of banking relations between the two sides maintaining that proper banking ties could guarantee continuation of trade and economic cooperation.

He said his ministry was committed to launching banking and commercial relations with Iran as no effort will be spared to remove obstacles to bilateral collaborations.

Iranian Deputy Foreign Minister Morteza Sarmadi was another high-ranking official at the joint meeting who recalled an earlier meeting with the Omani side nine months ago saying “it was agreed during that session cooperation between Iran and Oman grow to satisfactory levels by complete removal of all obstacles.”

Sarmadi said trade and economic relations would never improve in the absence of banking relations and highlighted the role of central banks in expanding banking collaborations.

HA/3930497

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President Rouhani: 11th government continuing path of development

Tehran, March 13, IRNA – President Hassan Rouhani said on Monday that the 11th government has attained significant achievements in economic, political, cultural and defense sectors and is to continue the path of development in line with the yardsticks drawn by the constitution and unique leadership.

 

President Rouhani made the remarks in a meeting with a group of Majlis (parliament) representatives in Tehran on Monday. 

There is no doubt that the country’s situation is very promising than in the past and all should be united to resolve the country’s problems, Rouhani said.  

On resistance economy, Rouhani said the policy will strengthen the country in dealing with the enemies.

The country’s turn-over from petro dollars lessened by one third or even a quarter and dropped from $20 to $30, but created no turbulences in the market which can be a good indication for economic resistance, he said. 

All domestic and international statistics prove that Iran has attained significant growth in terms of economy, politics, culture and defense, Rouhani said.

Registration of two digit economic growth should be regarded as a significant turnover in the country’s developing plan, he said.

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Iran’s Vaezi, Russia’s Novak to Meet in Moscow Monday: Report 

News ID: 1354180 Service: Economy 

 March, 13, 2017 - 15:14 

TEHRAN (Tasnim) – Iran's Minister of Communications and Information Technology Mahmoud Vaezi and Russian Energy Minister Alexander Novak are planned to hold talks in Moscow on Monday, a report said. 

According to the report carried by Sputnik on Monday, Novak will host the Iranian minister in the Russian capital.

"They will hold a meeting today," a spokeswoman for Russia’s Energy Ministry said.

The two sides are expected to discuss the construction of a thermal power plant (TPP) in Iran, the report added.

Back in December, an Iranian holding company and Russia’s Technopromexport engineering company signed an agreement to build the power plant. 

The construction is expected to take four and a half years. The deal includes four 350-megawatt energy blocks and a desalting facility with a daily capacity of 200,000 cubic meters.

Funds for construction will be provided within the framework of a €1.2 billion ($1.27 billion) export loan extended by Moscow to Tehran for five years.

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Tehran-Moscow ‘Oil-for-Goods’ Swaps to Reach $45bln Annually: Russian Official 

News ID: 1354068 Service: Economy 

 March, 13, 2017 - 14:24 

TEHRAN (Tasnim) – The total volume of “oil-for-goods” swaps between Iran and Russia is expected to reach $45 billion annually, Russian trade representative in Iran Andrei Lugansky said. 

The total value of goods “under the program (oil-for-goods) can currently be estimated at $45 billion a year,” Lugansky told Sputnik on Monday.

He further said the “legally viable” program stipulates 50% monetary payment and 50% payment-in-goods in exchange for Iranian oil.

“The 50 percent coming from Russia are railroad items, heavy trucks, by which I mean our buses, the aviation industry (equipment for airfields, planes themselves),” Lugansky continued.

Since coming into force in January 2016 of the Joint Comprehensive Plan of Action (JCPOA), a nuclear deal between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany), Tehran and Moscow have ramped up efforts to boost bilateral trade.

Iran and Russia have also formed a strong alliance in recent years, with both supporting the Syrian government against foreign-backed militancy.

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Vaezi in Moscow to discuss expansion of ties

News ID: 3931107 - Mon 13 March 2017 - 10:48

Politics

TEHRAN, Mar. 13 (MNA) – Iranian ICT Minister Mahmoud Vaezi who heads Iran-Russia’s Joint Commission for Cooperation, arrived in Moscow Mon. morning to meet with Russian officials.

The Iranian ICT Minister is scheduled to hold talks with Russian Energy Minister Alexander Novak who heads Iran-Russia’s Joint Commission for Cooperation on the Russian side. Vaezi will also meet with Nikolai Nikiforov, Minister of Communications and Mass Media, as well as Russia’s first Deputy Prime Minister Igor Shuvalov. 

On this two-day visit, the two sides will exchange views on a comprehensive development of bilateral relations according to the strategies confirmed by the two countries’ presidents and in the light of President Rouhani’s upcoming visit to Moscow and his meeting with President Putin in late March.

The 15-strong delegation accompanying Vaezi on this trip will discuss expansion of cooperation in various fields of oil, industry, railway and judiciary with the Russian side. 

MS/IRN82462438

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AFTER THE WAR; Quick Kuwaiti Recovery Is Seen, With the Cost Less Than Thought
By YOUSSEF M. IBRAHIM, Special to The New York Times
Published: March 18, 1991
KUWAIT CITY, March 17— Kuwait's economy, far and away the strongest among the oil-producing countries before the Iraqi invasion in August put it into a coma, is expected to revive and move back to boom times within two years, say many economic and financial experts on the region.
In scores of interviews here in the last week, Kuwaiti, American and Western financial specialists, including business executives and economic planners, estimated that the cost of reviving the emirate's economy, including the devastated oil industry, would be far less than earlier estimates.
With Kuwait holding about $80 billion in financial reserves abroad, it is more than capable of getting back on a sound economic development track, these specialists say. 'Catastophic but Not Fatal'
"There is no economy now," said Wynne Fuller, who heads the emergency operations division of the United States Army Corps of Engineers here. "We are looking to two to five years to re-establish an economy that resembles what the Kuwaitis used to have."
The Corps of Engineers is to evaluate the damage to the Kuwaiti economy and begin a repair program.
"When all is said and done," Mr. Fuller said, "what you have here is catastrophic but not fatal. The only way I can compare this is to Hurricane Hugo in the States, which cost $4 to $5 billion to repair. So you are looking here at $5 to $10 billion outside the oil sector."
Other officials, including the country's Finance Minister, Sheik Ali al-Khalifa al-Sabah, estimated the cost of reviving the oil industry, sabotaged by Iraqi occupation troops, at $10 billion to $20 billion. Fires Halt Oil Industry
These new and more authoritative estimates are far below others advanced over the last few weeks by a variety of foreign experts living outside Kuwait. Some had suggested that Kuwait's revival might cost as much as $100 billion.
The latest estimates also reflect the growing appreciation here that the damage to Kuwait's roads, power stations, stores, banks and hotels, while substantial, can be repaired through cleaning and patching on a huge scale rather than major reconstruction. Even that work will require skills and coordination that Kuwait cannot muster alone.
The oil industry, source of most of the country's revenue, has been brought to a halt by fires set in most oil wells and refineries. The country's commercial and business centers have been destroyed or looted, immobilizing what was once the Middle East's most active system of private enterprise.

There is no Kuwaiti currency: the Kuwaiti dinar has no fixed value and the Central Bank and other banks have yet to tell people what will happen to their savings or to find records of millions of accounts. Free Food and Gasoline

For now, people living here are getting free food and gasoline. But no salaries are being paid, and a large-scale review of employment records, with a view to eliminating foreign workers like the Palestinians, has yet to get under way.
A variety of currencies, including United States dollars and Saudi rials, are preferred to the Kuwaiti dinar, which is to be replaced with a new one whose exchange rate has yet to be established by the Central Bank.
Yet with the approximately $80 billion in financial reserves held outside the country and with the help of many foreign construction companies, there seems little doubt that the Kuwaiti economy will start rolling again.
"I am very confident about the fact that we will have a boom here," said Michel Shalhoub, a French businessman of Lebanese origin who operated a franchise business selling luxury items from Western companies like Du Pont, Chanel and Lacoste.
Mr. Shalhoub was directing workers repairing two of his shops in the lobbies of what used to be luxury hotels.
"My personal losses are typical," he said. "We had seven stores in Kuwait which were all looted. We salvaged some of the goods in storage facilities. Altogether, I would say our losses are about $6 million, or about 30 million French francs, which represents one-third of my assets here and the equivalent of five years of profits."
Mr. Shalhoub said Kuwaitis would need, and could afford, to buy millions of consumer goods to replace what they lost, including luxury items. 
(Page 2 of 3)
"Before too long, people will be buying freezers, air-conditioners, furniture, carpeting," he said. "It will be even bigger than before because those people who kept much of their money outside Kuwait for fear of things just like the Iraqi invasion now know for sure that this country is 100 percent secure and that it will be protected by the West's best armies and a reliable defense alliance to preserve its integrity and freedom." Workers' Future Debated
Before anything that resembles a big economic takeoff can take place, however, the Government must get people back to their jobs, a task that is complicated by some political imperatives dictated by the Persian Gulf crisis.
On the 16th floor of the Industrial Bank here, the chairman, Saleh M. al-Youssef, met over the weekend with his top advisers to determine how they will call their employees back to work, given the Government's edict that expatriates from countries that sided with Iraq must be dismissed.
While the bank's officials have decided to call back their employees this week, other important offices, like the Ministries of Defense, Interior, Information, Oil and Finance, have not yet figured out how to resume operations without many of the foreigners.
"We will decide on a common policy," Mr. Youssef said in an interview. "There are employees we do not wish to keep. They include Palestinians, Yemenites and Sudanese. We will give them their due, of course, but their departure is a political decision. I think the idea is to put pressure on the Palestine Liberation Organization."
There is little doubt that ridding major institutions of thousands of Palestinians will be disruptive to the economic reconstruction of Kuwait. But there is also no doubt of the Government's determination to make sure they go. Change of Attitude Needed
The magnitude of the problem is evident in the makeup of the Kuwaiti population before the occupation. Of two million or so people living here, only 700,000 were Kuwaitis while the others were expatriates, including about 450,000 Palestinians. These did jobs like running hotels, keeping books, repairing cars and working the night shifts.
The country's Planning Minister, Suleiman al-Mutawa, said it was necessary for Kuwaitis to undergo a transformation in attitude, divorcing themselves of the notion that they work only as managers or state employees collecting large salaries with others doing the work.
In the process, Kuwait will have to do away with the whole structure of a sort of welfare state based on prosperity that it has become used to.
"I think there will be a review of all our policies based on what happened on Aug. 2," Mr. Mutawa said. "The questions that have been flushed to the surface are where we can keep expatriates and where we cannot."
"Many of these expatriates have no genuine interest in Kuwait and have, therefore, collaborated with the Iraqis," he continued. "In vital sectors, we may pick up some of the cost overruns to pay Kuwaitis to do those jobs they will not do for the same low salaries that expatriates accept. This is where Government subsidies should go into the private sector to encourage them to hire Kuwaitis instead of expatriates."
"The bottom line," Mr. Mutawa said, "is that the welfare state was mother and grandmother, and when you have that waiting for you at home, you tend to become very spoiled." Records Need to Be Found
Then there is the problem of activating the banks and circulating the new Kuwaiti currency. The Government says it has printed notes, but it is far from clear how the money will be distributed and on what basis.
Bankers said they understood that Government policy will be to consider that everything in Kuwait will revert to where it stood on Aug. 1, the day before the Iraqi invasion. That means that people who held bank accounts then will preserve the value of their money. But the problem is how to locate bank records and find enough employees to carry the policy out.
"What about all the Iraqi money we had to deal with?" asked a merchant who asked not to be identified. "I sold much of my stuff to Iraqis because I had no choice. Does this mean that when I go to give them the Iraqi money, they will not give me Kuwaiti money in return? What happens to the values of the goods I sold?"
(Page 3 of 3)
For the moment, the entrepreneurs of Kuwait have not yet returned from exile and there are still 400,000 Kuwaitis out of the country. Much of the repair work is being done by foreign companies contracted by the United States Army Corps of Engineers.
Mr. Fuller said the corps had already given out seven contracts totaling $46 million. The contracts are for repairs to buildings, roads, electric cables and sanitation. Where Contracts Go
They have gone to non-Kuwaiti companies, including Shand of Britain, al Harbi of Saudi Arabia and several United States companies, including Blount, American Dredging Company and Brown & Root.
In addition, contracts worth tens of millions of dollars have been given to firefighting companies, largely American, that are preparing to put out fires at an estimated 600 oil wells.
But to get the emirate's economy rolling, Government spending will have to be directed at Kuwaiti companies in the building and rehabilitation business and this cannot begin until the banks are back in business and the Kuwaitis start to return home.
Along with debt, there are fears of inflation. Before the invasion, the inflation rate in Kuwait was kept at low levels -- 1 to 2 percent. With reconstruction, there are fears that political pressure will force the Government to abandon caution and cause inflation to rise to unacceptable levels.
"Economically, we can do it," said Sheik Ali, the Finance Minister. "But how to do it in the most efficient way is the difficulty. There are political considerations that may blow away the spending plans which are cautiously structured." Un Unknown Quantity
Then there is the matter of political stability, an unknown quantity that could presumably influence economic recovery.
Last week, there was unhappiness here when the Government said it would not be able to restore electricity for three more weeks. Many people asked that the Government abandon its slow reconstruction plans and rush to import thousands of generators to supply homes.
"We need patience, but I can understand that people have suffered too much and do not have much patience to give," the Planning Minister, Mr. Mutawa, said. "The period of crossing from disaster to recovery is going to be a difficult one."
Photo: Although Kuwait's economy is virtually nonexistent now, experts expect it to revive and move back to the better times it enjoyed before the war within two years. A rare open business in a Palestinian neighborhood of Kuwait City did a booming carryout food business on Saturday. (Agence France-Presse) (pg. A9)

[tigergorzow]

2 hours ago, screwball said:

There is no Kuwaiti currency: the Kuwaiti dinar has no fixed value and the Central Bank and other banks have yet to tell people what will happen to their savings or to find records of millions of accounts. Free Food and Gasoline

For now, people living here are getting free food and gasoline. But no salaries are being paid, and a large-scale review of employment records, with a view to eliminating foreign workers like the Palestinians, has yet to get under way.
A variety of currencies, including United States dollars and Saudi rials, are preferred to the Kuwaiti dinar, which is to be replaced with a new one whose exchange rate has yet to be established by the Central Bank.
Yet with the approximately $80 billion in financial reserves held outside the country and with the help of many foreign construction companies, there seems little doubt that the Kuwaiti economy will start rolling again.

SB,  Truly appreciate the information on Kuwait......Iraq & Iran will rise again with a stronger currency IMHO..... I believe it is definitely sooner rather than later.

GO RV RIAL

GO RV / RI IQD

[pokerplayer]

1 hour ago, tigergorzow said:

SB,  Truly appreciate the information on Kuwait......Iraq & Iran will rise again with a stronger currency IMHO..... I believe it is definitely sooner rather than later.

GO RV RIAL

GO RV / RI IQD

Its great to be back tiger. Was  having withdrawals not reading your excellent news finds !!

pp

[tigergorzow]

1 hour ago, pokerplayer said:

Its great to be back tiger. Was  having withdrawals not reading your excellent news finds !!

pp

PP,  I am very excited to bring articles, analysis and comments to my fellow DV members.  However, I look forward to the DV Post-RV Party in the near term.  Our blessing are coming and we must be prepared to Pay It Forward...--@@))

Always Keeping The Faith!!

GO RV RIAL

GO RV / RI IQD