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Iran Economy Update
Issue 92/2016 – Monday August 29th
Content
CBI confirms agreement with FATF but ensures the issue is under control of SNSC
Iran needs $200bn in investment annually to realize planned %8 economic growth
South Azadegan to be the first field Iran puts on int’l tender post-sanctions
CBI confirms agreement with FATF but ensures the issue is under control of SNSC
CBI Governor Valisollah Seif confirmed on Monday that Iran has reached an agreement with the Financial Actions Task Force1 (FATF) but ensured the critics that the issue is under the strict
scrutiny and control of the Iranian Supreme National Security Council (SNSC) and hence there is no room for being worried. Seif said FATF is an international body that shares the experiences of countries in their efforts against money laundering, financial corruption, terrorism financing and drug smuggling. He said no country whatsoever will access
information of other nations through this body, and that the quarrels and concerns that have arisen in the country in this regard are unreasonable.
1 FATF is an inter-governmental body and is tasked with promoting implementation of legal, regulatory and operational measures for combating money
laundering, terrorist financing and other related threats to the integrity of the int’l financial system.
According to Tasnim News, Seif made the comment in a TV interview aired on Monday evening. One day earlier, Minister of Economic Affairs & Finance Ali Tayyebnia had appeared on another TV channel and among addressing other issues, ensured that the agreement signed between FATF and CBI doesn’t imply that the former will find information dominance into Iran’s financial systems.
According to the daily Shargh, Tayyebnia gave a background on the developments that led to the agreement with FATF and said upon a motion proposed by the Judiciary, the Majles (parliament) passed the law of Combating Terrorism Finance Act as foreign banks were asked not to engage in deals with Iran.
Iran needs $200bn in investment annually to realize planned %8 economic growth
The government’s spokesman and head of Management & Planning Organization (MPO) said achieving the planned annual economic growth rate of 8 percent within
the Sixth Development Plan requires some 180 trillion tomans ($50 billion) annually in loan facility that is supposed to be provided by the banking sector, IRNA wrote on Tuesday.
Mohammad-Bagher Nobakht made the comment in a speech at the inauguration ceremony of the 27th Islamic Banking Conference in Tehran and said this amount is about 24 percent of the funds that the country needs to absorb in total. He said during the years of implementing the Sixth
Development Plan (2016-2020) we require 723 trillion tomans
annually (more than $200 billion), 22 percent of which should be provided from foreign resources.
In a related development, Parliament Speaker Ali Larijani said on Monday that proper groundwork for domestic and foreign investment has been laid post-sanctions and that $60 billion worth of credit lines have been extended to Iran by some
countries, without giving names.
According to IRNA, Larijani was speaking on Monday in the Iranian
2 Golpayegan City, Isfahan Province
and said the coutnry’s status is [positively] changing post- sanctions.
South Azadegan to be the first field Iran puts on int’l tender post-sanctions
The deputy Petroleum NIOC minister and managing director declared that the first round of oil tenders will be held in the last week of the Persian month of Mehr (Mehr covers a period from 22 Sept. to 22 Oct.), and explained that the South Azadegan would be the first field that will be up for tender. According to IRNA, Ali Kardor said on Tuesday that the outlines of the IPC has been approved and enacted by the government and the next step would be drafting the frameworks of the new contracts. “From next week, letters will be issued to IOCs to inform them of the areas they are interested in,” said Kardor.
