World Bank: Iran gains access to $30B in frozen assets

Business Materials 29 July 2016 16:32 (UTC +04:00)

Baku, Azerbaijan, July 29

By Khalid Kazimov – Trend:

Iran has gained access to its $30 billion in frozen assets following the implementation of the Joint Comprehensive Plan of Action (JCPOA) January 16, World Bank announced.

“As part of the JCPOA, some $30 billion of Iran's frozen assets have been released, allowing the government to access funds and assets abroad,” The World Bank’s latest MENA Quarterly Economic Brief, “Whither Oil Prices?” report said.

The report further added that the slump in oil prices has hurt the Iranian economy but less than other oil producers in the region.

The reason is that compared to other oil producers, the Iranian economy is more diversified, and therefore less dependent on oil revenues. Oil accounts for about 30 % of government revenues, the report added.

To maintain market share, Iran’s oil production has increased since January 16, 2016 when implementation of the Joint Comprehensive Plan of Action (JCPOA) and lifting of sanctions began. Some 600,000 barrels per day (b/d) has been added so far and the government plans to raise it up to 800,000 b/d by the summer of 2016, reaching pre-sanction levels (prior to 2014).

The government has taken some actions to mitigate the impact of low oil prices on its budget including raising taxes on parastatal organizations which were previously exempt from taxes, the report said.