Over $1.7B of government shares sold to private sector in Iran

Business Materials 12 April 2015 15:55 (UTC +04:00)

Baku, Azerbaijan, Apr.12

By Fatih Karimov - Trend:

More than $1.7 billion of government shares were sold in Iran to the private sector in the past Iranian fiscal year, which ended on March 20.

Some $107 million of the shares were sold on the main Stock Market and $960 million of the shares were sold on the Over-The-Counter Market, Iran's Mehr news agency reported on April 12.

Moreover, some $640 million of the shares were sold in block offering bids.

The government has envisioned a large privatization program in the Fifth Five-Year Development Plan (2010-2015), aiming to privatize about 20 percent of state-owned firms each year.

Under the present interpretation of the Article 44 of Iran's Constitution, hundreds of state-owned companies have been privatized.

More than 1,320 trillion rials (about $38 billion) of state shares have been divested in Iran since Iranian year 1384 (began in March 2005).

Around $8.2 billion of the shares were paid by the administration to its individual and legal creditors.

Gholamhossein Shafei, chairman of Iran's Chamber of Commerce, Industries, and Mines said on Jan. 5 that according to the General Inspectorate Organization, just 5 percent of the shares have been really transferred to the private sector.

The privatization process has been implemented contrary to objectives of the Article 44 of the Constitution, he added.