Iran’s Rouhani to issue new economic package to combat recession

Business Materials 6 October 2015 14:48 (UTC +04:00)

Baku, Azerbaijan, Oct. 6

By Fatih Karimov - Trend: Iranian President Hassan Rouhani will issue a new economic package to combat recession.

Iran's economy minister Ali Tayebnia said that the package of proposals has been prepared over the past three months and will be issued next week, Iran's Mehr news agency reported Oct. 6.

A bright future will await Iran's economy if the new policies are implemented, Tayebnia said.

"After lifting of the sanctions, we will have the opportunity to boost crude oil sales and lots of our blocked assets will be released."

"In the post-sanctions era, we will be planning to strengthen the domestic production bases," he noted.

Four Iranian ministers have warned Rouhani of a recession in the capital market.

The ministers of economy, industry, labor, and defense have sent a joint letter to Rouhani, criticizing some uncoordinated policies and decisions by different bodies, warning that it may be led to a crisis in the capital market if a 'prompt corrective measure' is not taken.

Rouhani has called related officials to follow up the case seriously and offer solutions for the problem.

The package includes reducing the bank interest rate proportional to the inflation rate and supporting the domestic production.

The Tehran Stock Market has experienced a considerable decline over the past year.

The four ministers have said that since January 2013 the capital market value has dropped by 42 percent, equaling 1800 trillion rials (about $51 billion).

According to IMF's latest report, published on Oct.5, Iran's economy may have contracted during the first half of current fiscal year (started on March 21), and as a result, real GDP growth is projected to decline from 3 percent in 2014/15 to somewhere between 0.5 to -0.5 percent in 2015/16, depending on the exact timing of the expected lifting of sanctions.

Iran's sanctions is expected to be removed in first half of 2016.

Edited by CN