Iranian capital market in need of basic changes
Tehran, Iran, June 19
By Mehdi Sepahvand - Trend:
It is needed that the Iranian capital market undergoes basic changes in order to attain its true place in the economy of Iran, Hossein Kazali, CEO of the Iranian Keshavarzi Bank said.
Experts are in agreement on the idea that the share of the Iranian capital market in funding is much less than the global standard, Fars news agency reported June 19.
President of the Central Bank of Iran said recently that the country's banks provide for 85 percent of economic sectors' funding across the country.
That leaves a small share of 15 percent for the capital market.
Hossein Khazali said that an economic growth of 8 percent would need 1500 trillion rials (over $50 billion) new investment in the country's economy.
He said that during the last Iranian fiscal year (which ended March 20), the capital market provided for 230 trillion rials (close to $7.9 million) investment.
A 200-percent growth of the capital market would need vast promotion, facilitating regulations and fiscal procedures, as well as improving the performance of fiscal organizations such as funding and brokering companies, according to Khazali.
A February report by the Iranian Central Bank showed that the capital market's share in financing increased from 7.1 percent in the Iranian year of 1390 (March 21, 2011 to March 20, 2012) to 11.9 percent two years later.
Edited by CN
Follow the author on Twitter: @mehdisepahvand