Baku, Azerbaijan, June 1
By Khalid Kazimov - Trend:
The Islamic Republic has sold 1.28 trillion rials (about $42.1 million) worth of stocks of governmental companies in the new Iranian calendar year (started in March 20). Iranian Privatization Organization (IPO) has gradually divested the stocks through the Tehran Stock Exchange over the past two months, IPO official website reported.
Through privatization of governmental companies, Iranian government seeks to restructure the country's economy and reduce the government's expenses by promoting the private sector.
Increasing productivity levels in large enterprises is also among the main objectives for selling the shares of governmental companies. The TSE main index over the past two months has been volatile following a positive reaction to the implementation of the Joint Comprehensive Plan of Action (JCPOA) Jan. 16, which resulted in the removal of nuclear-related sanctions imposed on the Islamic Republic's key energy and financial sectors.
The index jumped 25 percent in January when the international sanctions against the Islamic Republic were lifted as a result of the implementation of the JCPOA, aka nuclear deal.
Some observers suggest that difficulties in Iran's banking ties and money transactions are among the main reasons for the recent falls on the market.