Iranian Rial

[pokerplayer]

I have a financial diversification plan in mind as well after this thing pops. Property, precious metals, to name a few. Don't want all my eggs in one basket as I never want to work again.

pp

[pokerplayer]

 

XE value rate change just this morning. I know it's just a change in value of USD but I like it just the same....

pp

 

  1 USD =31,650.00IRR - 4 AM

  1 USD =31,250.00IRR- 5 AM

 

[screwball]

11 hours ago, pokerplayer said:

I have a financial diversification plan in mind as well after this thing pops. Property, precious metals, to name a few. Don't want all my eggs in one basket as I never want to work again.

pp

Already invested in precious metals but would love to increase holdings...not working is me at the moment but don't want to go back...

Edited October 17, 2016 by screwball

[pokerplayer]

2 hours ago, screwball said:

Already invested in precious metals but would love to increase holdings...not working is me at the moment but don't want to go back...

I'm also in Silver as well and have a # in mind to Increase my holdings and I am as well not working and would love to be retired big time !!

pp

[screwball]

3 hours ago, pokerplayer said:

I'm also in Silver as well and have a # in mind to Increase my holdings and I am as well not working and would love to be retired big time !!

pp

Silver is beautiful, owning the money of "gentlemen" best investment I believe long term...not sure if I could retire but slow down definitely and do the things that I want and build something for the children..

[screwball]

http://www.al-monitor.com/pulse/originals/2016/10/iran-subsidy-reform-cash-payments-rouhani-reform.html

[screwball]

1. Economy
2. Business And Markets

Tuesday, October 18, 2016

Reform Plan to Help Tackle Distressed Debt

 

The Central Bank of Iran has come up with a slew of measures to reduce the mountain of non-performing loans. The proposals, as part of the banking overhaul plan, would also help curb future growth in the distressed debts of banks.

According to Peyman Qorbani, the CBI deputy for economic affairs, having an active presence in the interbank market, lowering law-abiding banks’ capital requirements as an incentive, rating lenders based on their performance and keeping a closer watch on troubled banks are among key measures included in the banking overhaul plan for lowering the bulk of troubled assets in the banking sector.

“Implementing open market monetary policies, regulating unauthorized financial institutions, and increasing private banks' capital are also included in the banking overhaul plan,” he told Tazehaye Eqtesad Journal, published by the Monetary and Banking Institute.

The banking overhaul plan was enacted by President Hassan Rouhani with the aim of reviving the lethargic banking system. The blueprint has been hailed by monetary officials as a giant step in modernizing the outdated banking system and addressing its many challenges.

The official also noted that consolidation, punitive measures and finally dissolving unruly banks and credit institutions are also among the proposed measures for promoting the efficiency of central bank’s supervision and lowering the NPLs.

The total amount of NLPs in Iranian banking system is estimated to range between 800 trillion rials ($25.5 billion) and 1 quadrillion rials ($31.9 billion). Government debts to banks constitute a considerable portion of the total bad debts.

Debt Instruments

Addressing the issue Qorbani said, “A special department for debts is set up at the Ministry of Finance and Economic Affairs, which has started issuing treasury bonds.”

Qorbani said however that the government could have addressed the issue more effectively by launching a prober debt market.

Elaborating on the main causes of the growth in toxic loans, Qorbani said, “In the past decade, bankers were under government pressure for allocating loans…That disrupted the technical procedure of qualifying applicants.

“Due to financial pressures [on banks and businesses], many borrowers decided not to repay their debts.”

Some big borrowers preferred to pay fines for defaulting on their loan repayments “because taking out new loans would be more costly.”

As a result, the volume of non-financial assets started to rise in the banking sector, Qorbani said, adding that the recession in the property market added to the problem.

Moreover, banks had to offer higher interests in order to attract savings, he said. “This resulted in higher lending rates and larger amounts of bad debts.”

The CBI has managed to enhance the condition by implementing various measures, according to the senior banker. Lowering the duration of term deposit–from five years to approximately one year– and lowering interest rates in the interbank market to 17.5% could be named as the key measures.

It also managed to lower deposit rates from 40% in 2013 to 15% now.

However, issues like the mountain of bad debts and shortage of capital still pose a challenge to the struggling banking sector.

The central bank hopes that the banking overhaul plans can and will help address major issues. In the reform plan, efforts have been made to also terminate the unhealthy rivalry on bank interest rates, increase the capital of banks, restructure government debts to banks and clear banks' balance sheets

[screwball]

Luxemburg banks are welcome to establish branches in Iran, as it would help two-way commercial relations, said Valiollah Seif, Central Bank of Iran governor, during a meeting with Etienne Schneider, deputy prime minister of Luxembourg on Monday. Seif expressed Iranian banks’ interest for launching branches in the European nation and called for sharing experience in Islamic banking and use of financial tools, CBI’s website reported. He invited a delegation of Luxembourg bankers to visit Iran for further talks. Schneider pointed to the lifting of sanctions against Iran, and said that his country is ready to start long-term cooperation with Iran and organize training courses for bankers. He invited Seif to visit his country

[screwball]

 

Iran, Luxembourg economies complementary: CBI chief

Tehran, Oct 18, IRNA – Iran and Luxembourg economies are complementary to each other, Iran's Central Bank Chief Valiollah Seif said on Monday.

 

He made the remarks in a meeting with Deputy Prime Minister of Luxembourg Etienne Schneider.

Enhancement of banking cooperation between Iran and Luxembourg is necessary for the two countries to strengthen economic ties, Seif said. 

Iran welcomes establishment of Iranian and Luxembourg bank branches in the two countries, the CBI chief added.

He also called for the establishment of brokerage cooperation between the two countries’ banking systems. 

Iranian and Luxembourg economies are complementary to each other, the official added.

Seif asked for more consultations between bankers in Iran and Luxembourg in order to exploring new ways of enhancing banking cooperation.

9191**2044

[screwball]

 

No obstacles for Luxembourg to boost Iran trade ties: Deputy PM

Tehran, Oct 18, IRNA – There are no obstacles on the way for Luxembourg to promote trade ties with Iran, Deputy Prime Minister of Etienne Schneider said on Monday.

 

Iran’s sanctions have been removed and now there are no obstacles on the way for development of trade cooperation with Iran, Schneider said during a meeting with Valiollah Seif Chief of Iran's Central Bank.

He said Luxembourg as a country with a good experience in the field of training the bankers, is ready to share its experience with Iran in this area.

The deputy prime minister of Luxembourg also called for continuation of consultations between Iranian and Luxembourg bankers.

Schneider invited the CBI chief to pay an official visit to Luxembourg in the near future.

9191**2044

 

 

 

 

• اقتصاد
• Iran
• Luxemburg
• Trade Ties

Contact Editor-in-chief:  newsroom@irna.ir 

[screwball]

Oil minister: Iran close to pre-sanction level in oil production

Tehran, Oct 17, IRNA – Minister of Petroleum Bijan Zangeneh said on Monday that Iran is approaching the same level of its oil production as in the pre-sanctions years.

 

According to non-official figures Iran is very close to the amount of oil it used to produce before sanctions, Zangebeh told reporters.

He said Iran is currently producing about four million barrels of oil per day.

Commenting on the question if Iran would possibly join the oil freeze plan to lower its oil production, the minister said, the issue of setting a production ceiling for members of the Organization of Petroleum Exporting Countries (OPEC) will be raised during the organization’s November meeting.

OPEC is to meet in Vienna on November 30 to iron out the details of last month’s agreement, which proposed to limit daily crude production to between 32.5 million and 33 million barrels. 

As for implementation of Iran's new oil contracts, Zangeneh stressed that there is no obstacle on the way of their implementation.

The new Iranian Petroleum Contracts (IPCs) are to help achieve the goal of producing five million bpd. 

Zangeneh said that all should try to remove any probable problems to implement the IPCs.

1424**1394

[screwball]

 

Vaezi: Tehran, Baku to launch joint website for online shopping

Tehran, Oct 17, IRNA – The Islamic Republic and the Republic of Azerbaijan are trying to launch a joint website for purchasing commodities online, says Iran's minister of Communications and Information Technology.

 

Mahmoud Vaezi made the remarks in a meeting with Minister of Communications and High Technologies of the Azerbaijan Republic Ramin Guluzadeh here on Monday.

Vaezi said that the website is to facilitate e-trade and prepare possibility for easy purchase of goods by people in both countries.

He added that all goods produced in the two neighboring nations are to be presented in the website designed for online shopping.

Vaezi said that the commodity vendors in Iran are going to rely on the Post system, the Post Bank and Payam Airport to dispatch and deliver purchased goods. 

According to the Iranian minister, a committee is expected to be established to follow up issues related to launching the website and establishment of e-commerce between the two countries.

Vaezi also said that mutual relations are on the rise between Iran and the Republic of Azerbaijan in the field of communications and information technology, especially in the postal and e-trade areas.

He added that Tehran is to use Baku's experiences in the field of satellite technology and Baku is to use Iran's achievements in the field of information technology.

Vaezi encouraged the Iranian companies to participate in the Bakutel Exhibition in Azerbaijan Republic in December, to use experiences possessed by the country.

Ramin Guluzadeh heading an economic delegation arrived in Tehran on Monday morning.

1391**2044

[screwball]

 

Tuesday, October 18, 2016

Seoul Seeks to Diversify Relations With Tehran

 

South Korean Ambassador to Iran Kim Seung-ho on Monday discussed different aspects of relations and priorities between the two major trade partners Iran and South Korea, especially in the new climate after the removal of nuclear sanctions against Iran.

In May, South Korean President Park Geun-hye paid a landmark state visit to Tehran, which focused on boosting bilateral economic cooperation. The visit–the first by a South Korean president in more than half a century–represented South Korea’s efforts to tap into business opportunities in Iran.

“I believe Iran can become a land of opportunity for many South Korean firms,” Park told reporters on a plane back to Seoul.

During her visit, the two countries signed dozens of preliminary deals that could lead to contracts worth tens of billions of dollars. Seoul hopes the signed memoranda of understanding could pave the way for South Korean companies to eventually win massive infrastructure projects underway in Iran.

South Korea’s presidential office has described the MoUs as the “biggest-ever economic accomplishment”.

Kim was interviewed by the online English newspaper The Seoul Times. Excerpts follow:

What is your top priority as the ambassador of South Korea to Iran?

As an ambassador, my major priority is to stabilize and make balanced relations. Iran and Korea are both big countries. Our relations have been [traditionally] focused on only several areas … We have to develop cooperation in new fields to diversify our relations and make stronger ties. If we have stronger and diversified relations, we will have stabilized and balanced relations. It is our major priority.

How did the South Korean president’s visit to Iran affect the political and economic ties between the two countries?

Her visit infused a great moment in our relations, not only in political and economic areas, but also in cultural areas. The two sides signed more than 60 documents.

In culture area, it was agreed to establish Korean Culture Center in Tehran next year, which is also declared as year of cultural exchange for Korea and Iran. She visited this time only Iran, while Korean presidents and presidents of other countries [often] visit many countries in one travel. This means how important Iran is in the Korean president’s view … [Following the visit it was agreed that] $25 billion be lent to Korean companies who participate in Iranian projects in any fields.

Has there been any priority set for cooperation between the two countries?

Oil, infrastructure, railroad, hospital and pharmaceutical, petrochemical and cultural activities in Iran would be reliable to be selected to get that fund.

What barriers are in the way of the development of ties between the two countries?

So far, I do not think any obstacle. It depends on the will of the two countries’ governments and companies.

After the signing of JCPOA [the Joint Comprehensive Plan of Action, the formal name of the nuclear deal between Iran and the West], the banking system of Iran is bound to connect with those of other countries. Iranian officials say Iran’s banking system is linked with SWIFT, but South Korea does not apply that. Is that so?

Perhaps you mean Korean banks cannot send foreign currency to Iran despite linkage to SWIFT. Korean banks have to be intermediated by European banks for sending euro to Iran. However, European banks so far are very reluctant to do that. Korean banks are very much eager to see that this problem will be solved soon.

While the South Korean government faces problems transferring money to Iran, how can you implement the project of building a large cultural center in Iran? How can you finance the project?

In Korea, we have Iranian accounts for Korean currency (won)… We import Iranian oil and we put that money in Iranian accounts in Korean banks. Iran buys and imports Korean goods, pays to Korea, then Korea gets the money from Iranian banks in Korea … So for the time being, we use that mechanism, but it is not convenient. This is why the Korean government wants really eagerly banking ties between Iran and Europe will soon be normalized.

One year after the implementation of JCPOA, how much has the trade volume between the two countries changed?

Our import of Iranian oil has already doubled. Our export to Iran does not show a significant increase despite the removal of sanctions because of heightened competition in the Iranian market.

What areas are more probable to receive joint investments economically and industrially between the two countries?

I think there are plenty of possible areas for joint venture. In order to diversify our relations, in order to stabilize our relations, the Korean government wants to have as many joint ventures as possible. But what is more important in order to invite foreign investment, [is that] you should show them that if they put their money in Iran, their investment will be profitable. You have to persuade them and also the [Iranian] government should make general friendly environment for foreign investment. Money goes to where it is welcomed and stays where it is well treated.

What measures have been devised to further ease the trades between Iran and South Korea?

Customs authorities of Iran and Korea are working hard to facilitate customs procedures for each other’s goods and exchange relevant information. The more effective way would be Iranian accession to WTO, which Korea supports.

Are there ongoing negotiations to lower the tariffs between Iran and South Korea?

There is no ongoing negotiation in that regard, that is why Korea supports Iranian accession to WTO.

Over the past year, what measures were thought of to ease the visa issuance for tourism and commerce?

We received Iranian visa applications only for two hours per day, now we receive that application all day round from eight o’clock to four o’clock ... Before it took five days to get a Korean visa, but now it takes only one day. If you apply today, you will get a visa tomorrow.

In the past, seven additional documents were needed. Now you have to provide only two documents: recommendation letter and your employment certificate. When it comes to tourism visa, in the past, only two operators processed Korean tourism visa applications. Now we expand tourism operators up to 10.

You recently paid a visit to Markazi Province and the city of Arak. Has any agreement been inked?

I didn’t sign any document. I explained Korea’s strategy to strengthen mutually beneficial relations with Iran to the businessmen of Markazi and encouraged them to expand business with Korea.

What has been done for the marketing of Iranian saffron, handicrafts and carpet in South Korea? Can you contribute to these marketing processes?

The Iranian side has to do the marketing in Korea for these items. So far, we do not have any restrictions to import these products. Iranian carpet and Iranian caviar are very much well-known in Korea. So I think there are plenty of potential in the Korean market.

Is it possible to launch a direct flight between the two countries?

Recently two civil aviation authorities agreed to allow 11 flights per week if Iranian and Korean airlines start services. Now it is private companies’ decision to start direct air services.

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Organized by MillionaireAsia Pte Ltd and in collaboration with Hong Kong-based Basio Consultants and Services Ltd, the First Iran Investment Summit will be held in Singapore on October 26. A large Iranian delegation, including Central Bank of Iran’s Governor Vallioah Seif will be heading to Singapore to attend the event. “The lifting of sanctions on Iran has created unprecedented opportunities for investors,” a press release by MillionaireAsia reads. “The Iranian economy has strong fundamentals and is expected to grow at an average rate of 4-6% per annum over the next five years.

Iran has a population of 80 million and is the key gateway to the Commonwealth of Independent States, creating a potentially huge captive market of 380 million people.”

In February 2016, Singapore signed a Bilateral Investment Treaty with Iran and the country’s Foreign Investment Promotion and Protection Act provides a legal framework for investment protection by foreign investors keen to invest in the Islamic Republic.

MillionaireAsia is a regional multi-channel platform targeted at high net worth individuals in Asia.

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Minister: West to be forced to completely remove sanctions

Isfahan, Oct 18, IRNA – Minister of Finance and Economic Affairs Ali Tayyebnia said the West will eventually have to compeletly remove sanctions against Iran as Tehran has been quite faithful to its commitments to the Joint Comprehensive Plan of Action (JCPOA).

 

However, he noted, the Western parties of the JCPOA have failed to do so.

Pointing to the massive problems caused by unjust sanctions for Iran since the end of the imposed war in 1988, the minister said Iran is among very few countries in the world which has succeeded to overcome huge economic problems thanks to the guidelines offered by the Supreme Leader.

He said that by now the country has successfully overcome extensive economic problems caused by sanctions and even got a positive economic growth rate despite low oil prices.

The Iranian minister went on to stress the determination of the Iranian government to follow Resistance Economy policies to attain sustainable economic growth rate.

He said Iran is pursuing the goal of developing knowledge-based economy.

1483**1424**1771

[markb57]

you know. sad to say but the more I learn about our own govt and the amount of corruption we have done, the more I realize that we have no business sanctioning anyone for any reason. I think if people did the research, they would come to the same conclusion.

It is time to let Iran go completely.

[Freedomwish]

5 hours ago, markb57 said:

you know. sad to say but the more I learn about our own govt and the amount of corruption we have done, the more I realize that we have no business sanctioning anyone for any reason. I think if people did the research, they would come to the same conclusion.

It is time to let Iran go completely.

Yup. 

[pokerplayer]

14 hours ago, screwball said:

1. Economy
2. Business And Markets

Tuesday, October 18, 2016

Reform Plan to Help Tackle Distressed Debt

 

The Central Bank of Iran has come up with a slew of measures to reduce the mountain of non-performing loans. The proposals, as part of the banking overhaul plan, would also help curb future growth in the distressed debts of banks.

According to Peyman Qorbani, the CBI deputy for economic affairs, having an active presence in the interbank market, lowering law-abiding banks’ capital requirements as an incentive, rating lenders based on their performance and keeping a closer watch on troubled banks are among key measures included in the banking overhaul plan for lowering the bulk of troubled assets in the banking sector.

“Implementing open market monetary policies, regulating unauthorized financial institutions, and increasing private banks' capital are also included in the banking overhaul plan,” he told Tazehaye Eqtesad Journal, published by the Monetary and Banking Institute.

The banking overhaul plan was enacted by President Hassan Rouhani with the aim of reviving the lethargic banking system. The blueprint has been hailed by monetary officials as a giant step in modernizing the outdated banking system and addressing its many challenges.

The official also noted that consolidation, punitive measures and finally dissolving unruly banks and credit institutions are also among the proposed measures for promoting the efficiency of central bank’s supervision and lowering the NPLs.

The total amount of NLPs in Iranian banking system is estimated to range between 800 trillion rials ($25.5 billion) and 1 quadrillion rials ($31.9 billion). Government debts to banks constitute a considerable portion of the total bad debts.

Debt Instruments

Addressing the issue Qorbani said, “A special department for debts is set up at the Ministry of Finance and Economic Affairs, which has started issuing treasury bonds.”

Qorbani said however that the government could have addressed the issue more effectively by launching a prober debt market.

Elaborating on the main causes of the growth in toxic loans, Qorbani said, “In the past decade, bankers were under government pressure for allocating loans…That disrupted the technical procedure of qualifying applicants.

“Due to financial pressures [on banks and businesses], many borrowers decided not to repay their debts.”

Some big borrowers preferred to pay fines for defaulting on their loan repayments “because taking out new loans would be more costly.”

As a result, the volume of non-financial assets started to rise in the banking sector, Qorbani said, adding that the recession in the property market added to the problem.

Moreover, banks had to offer higher interests in order to attract savings, he said. “This resulted in higher lending rates and larger amounts of bad debts.”

The CBI has managed to enhance the condition by implementing various measures, according to the senior banker. Lowering the duration of term deposit–from five years to approximately one year– and lowering interest rates in the interbank market to 17.5% could be named as the key measures.

It also managed to lower deposit rates from 40% in 2013 to 15% now.

However, issues like the mountain of bad debts and shortage of capital still pose a challenge to the struggling banking sector.

The central bank hopes that the banking overhaul plans can and will help address major issues. In the reform plan, efforts have been made to also terminate the unhealthy rivalry on bank interest rates, increase the capital of banks, restructure government debts to banks and clear banks' balance sheets

 

I really like this article as it shows there determination at balancing the books quickly while removing bad debt that has no hope of repayment.

I can think of several countries that could learn from exercise.

pp

[screwball]

Foreign exchange rates are real in the market and are rising at a slow pace, says Valiollah Seif, governor of the central bank following the recent swings in the foreign exchange market.  

“Fluctuations in the forex market are momentary; we did see a short-term surge in forex rates last autumn which also was short-lived. Momentary gyrations cannot disturb the market,” he was quoted as saying by banker.ir during a meeting of the 'Government and Private Sector Dialogue Council' on Tuesday.

The US dollar was traded at 35,900 rials on Tuesday, down from a peak of 36,000 on Saturday which marks the start of the Iranian trading week.  

The Central Bank of Iran has started plans for launching a single foreign exchange rate regime. Iran’s national budget for 2017-18 will be based on unified exchange rates, according to Masoud Nili, President Hassan Rouhani’s senior economic advisor.

The CBI has an eye on reducing fluctuations in the foreign exchange market. It also is working to bring the official and market rates closer, mainly through lifting the official exchange rates over the past few months.

In a related move, the CBI has allowed banks to trade foreign currencies at market rates. Lenders also were given permission to attract deposits in hard currency.

“The surge in economic growth would help promote stability of the forex market,” Seif said.

At the weekend Seif announced that economic growth for the first quarter of the current Iranian year that started in March stood at 5.4%.

Dollar Transactions

The senior banker also referred to the US Treasury's recent guidelines and said: “OFAC clarified a couple of points about the nuclear deal; however, it did not elaborate on issues relating to international banks.”

The guidelines, issued by the US Treasury Department's Office of Foreign Assets Control on Friday, clarify that non-US banks can do dollar trades with Iran, provided those transactions don't pass through financial institutions in the United States.

There are still some restrictions for dollar transactions, he said, but added that this was not a big deal for the country.

The CBI also issued new guidelines this week clarifying domestic banks’ interaction with their foreign peers and businesses.  The bank said it was cognizant of the recent "alleviation of misgivings" about financial dealings with Iran and required banks to compel international entities to meet their commitments vis-à-vis Iran.

SME Loans

Pointing to banking sector’s plan for financing small and medium-sized enterprises Seif said: “About 12,000 SMEs have received at least a part of the money they applied for.”

“Nine trillion rials ($) was paid to the applicants, since the beginning of the Iranian fiscal year,” he said.  An estimated 160 trillion rials ($5.24 billion) is expected to be given to the SMEs.

Earlier on June, the CBI ordered banks and credit institutions to allocate a minimum 10% of their loans to small and medium-sized businesses in a move to help create jobs and lift the beleaguered production sector.

Larger enterprises need to run feasible and sustainable business, in order to qualify for the loans, said the central banker. “Resources of the banking sector should help augment domestic production and borrowers should be able to repay their loans” on time.

 

Topics

Central Bank of IranForex MarketSME Loans

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o ensure a more convenient stay, Tehran Municipality is preparing to launch a travel card for tourists, allowing both foreign and domestic visitors to take advantage of cash-free public transport and entry to museums across the capital.

The card can also be used to use payphones and access the Internet. Tentatively called Tehran Card, "this prepaid card is similar in function to Istanbulkart and London Pass and aims to offer the same services," said Farzad Hoshyar, the head of Tehran Tourism Headquarters at the municipality, Mehr News Agency reported.

Officials have not yet finalized the name for the card, but they intend to launch it before winter. More details, such as where the card can be topped up and exactly where it can be used, will be made available later.

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As Iranian banks struggle to improve their capital adequacy ratio and conform to international standards, the deputy director of the Money and Capital Market Commission in Tehran Chamber of Commerce says the Central bank of Iran has issued a directive to plump up banks’ capital cushions.  

Seyyed Hossein Salimi has told IBENA that the vice-governor of the CBI, Akbar Komijani, has communicated a new directive on capital adequacy for banks during the past few days, adding that the current average capital adequacy ratio is 5%, which is well below international norms.

“Based on Basel III standards, the capital adequacy of banks should be 13%,” he said. “The capital adequacy of one or two banks in Iran may be at that level, but it is less than 5-3% for most banks that again is lower than Basel II standards.”

Developed in response to the deficiencies in financial regulations exposed by the financial crisis in 2007-08, the third installment of the Basel Accords is a global, voluntary regulatory framework on bank capital adequacy, stress test and market liquidity risk.

Pointing to the heavy penalties that European banks have had to pay as a result of the dealings they had with Iran during the sanctions era, the official said because of that and despite the easing of restrictions most western lenders and financial institutions “are not falling over each other to work with Iranian banks.”  The reluctance will continue “unless Iranian banks implement international regulations. That is why they are “conforming to the different dimensions of international banking standards and regulations and have created specialized anti-money laundering units.”

 Time Running Out for Banks

Salimi, who is also a board member at the privately-owned Middle East Bank, says while the capital adequacy ratio of Iranian banks is in line with outdated standards such as those of Basel I and Basel II, the banks cannot expect international lenders to allocate credit or trust them.

Noting that while reaching acceptable capital adequacy standards is a time-consuming process, he said “banks will have to be merged if they are unable to reach the necessary capital adequacy threshold by the end of the next fiscal year in March 2018.”

The official also pointed to the CBI plan to impose deposit caps on banks, saying it will discourage banks from absorbing deposits willy-nilly. “It will also hold them accountable in the future for deposits and interest rates.”

In early October, CBI’s deputy for supervisory affairs Farshad Heydari said to foster healthy competition among lenders, the central bank is about to set a cap on the amount of resources and deposits banks will be able to absorb.

“By imposing a cap on the amount of deposits bank can absorb, the CBI is trying to create a healthy and competitive ambience between lenders,” Heydari said. The announcement drew mixed reactions with some calling it “unfeasible.”

Salimi added that because the CBI feels responsible toward the people’s savings, it has placed the amount of deposits with banks under heavy scrutiny. “The CBI is doing this to exert control and make banks more disciplined. We are in favor of this move.”

In September 2015, banks and credit institutions held 83% of the savings, according to CBI data.

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1. Economy
2. Business And Markets

Wednesday, October 19, 2016

Seif Calls on Gov’t to Repay Debts 

 

In a letter to President Hassan Rouhani, the governor of the Central Bank of Iran has formally asked for the government to repay its debt to the CBI. Valiollah Seif reportedly made the request in response to pressures on the CBI to publish its financial statements after two years, reports Payesh news website. Seif has said if the central bank decides to publish its balance sheets, the government’s debt to the CBI “will not look good.” The administration now owes over 1 quadrillion rials ($29 billion) to the banks alone, a legacy it inherited from the former government.

[screwball]

Iran, Luxemburg agree on mutual investment, double taxation avoidance

1. Economy

October 18, 2016

 

TEHRAN – Iran and Luxemburg agreed to sign a deal by the end of October on mutual investment and double taxation avoidance.

The decision was made during a meeting between Iranian Finance and Economic Affairs Minister Ali Tayyenbia and the visiting Luxembourg Economy Minister Etienne Schneider in Tehran on Monday, IRNA reported.

As reported, the Luxembourger minister also visited Central Bank of Iran Governor Valiollah Seif on Tuesday. 

Expressing satisfaction over the opportunities provided for both sides to foster economic ties after the removal of sanction in January 2016, Schneider said that the path to bolster bilateral relations is smooth now.

In November 2015, Luxembourg Foreign Minister Jean Asselborn made a trip to Tehran, where he conferred on expansion of mutual banking cooperation with Seif.

During the meeting, Seif referred to Iranian bankers’ interest in bilateral cooperation and said that “we are ready to collaborate with Luxembourg in various banking areas including management of reserves, gold trading, short and long-term activities in financial markets or credits.”

He further expressed willingness for the Iranian banking community to take advantage to Luxembourg’s consulting and training services in the banking system.

Asselborn, for his part, maintained that exchange of banking delegations between the two countries will lead to the improvement of economic relations.

HJ/MG

[screwball]

Iran's nuclear chief defended the 2015 nuclear agreement championed by President Hassan Rouhani, highlighting the extent and range of opportunities it has provided for national development.

Tehran got relief from international sanctions in January, when the landmark deal with major powers, formally known as the Joint Comprehensive Plan of Action, went into force following temporary curbs on its nuclear program.

"The situation after JCPOA has been incredible and opportunities are flooding in one after another," Ali Akbar Salehi was quoted as saying by Fars News Agency in an address to a gathering of elites in Tehran on Tuesday.

"We won't be able to speed up national development unless by importing [modern] technology. We need to access experience and achievements of other countries."

Rouhani's opponents have fiercely criticized the deal, fearing that an opening to the West, promoted by Rouhani whose primary concern is to reverse the current economic downturn, could make the country an easy prey for hostile western powers.

They also accuse him and his negotiating team of making too many concessions and compromising the Islamic Republic's principles.

"The term 'nuclear energy' brings to mind the words 'centrifuge' and 'heavy water'. But this industry has many more technical advantages," said Salehi, who heads the Atomic Energy Organization of Iran.

Under JCPOA, Iran was permitted to keep 130 tons of its heavy water stock and sell, dilute and dispose of the excess amounts, under certain conditions.

It is also operating one-third of centrifuges installed at Natanz and Fordo nuclear sites before it agreed to limit its nuclear work.

  Numerous Gains  

"JCPOA involved numerous achievements [especially] relating to technical aspects. We kept our nuclear industry alive and we have said that many times but some fail or do not want to listen," he said.

The green light for the full implementation of the action plan was pending a confirmation by the International Atomic Energy Agency that the Islamic Republic had put the curbs in place.

International firms are vying for a slice of Iran's lucrative market that remained untapped over years of sanctions.

Thanks to the deal, Tehran has restored access to the global banking system and has recouped most of its pre-sanctions market share of oil exports, on which its domestic economy heavily depends.

In addition, it is allowed by the pact to engage in nuclear cooperation with other countries.

This is while before the Rouhani administration came to office and took the initiative in nuclear negotiations in 2013, western powers insisted that the Islamic Republic should abandon its nuclear activities.

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Tehran has restored access to the global banking system and has recouped most of its pre-sanctions market share of oil exports, on which its domestic economy heavily depends.