Iran seeks to involve capital market in financing production sector
Baku, Azerbaijan, March 31
By Khalid Kazimov – Trend:
Iranian Minister of Economy and Financial Affairs Masoud Karbasian has called for involving the country’s capital market in efforts aimed at boosting the domestic production.
“The capital market should contribute to the domestic production,” the minister told Iranian public broadcaster.
Saying that banks in the current situation deal with financing most of the projects of the country, he added that the capital market is capable of playing a key role in financing projects.
He further added that the ministry will put the issue of luring domestic and foreign investment into the production sector over the current fiscal year which started on March 20.
The Iranian banking system paid some 4,620 trillion rials (about $124 billion based on official exchange rate of $1 to 37,200 rials) in loans during the first 10 months of the last fiscal year.
The highest value of the paid loans went to service sector (40 percent), followed by industry and mining sectors (29 percent), commerce (14 percent), housing (9 percent) and agriculture (8 percent).
Over 1.34 trillion rials of loans were paid to industry and mining sectors, 645.4 trillion - to commerce sector, 396.13 trillion rials - to the housing sector, and 379.06 trillion rials - to the agriculture sector.
The main index of the Tehran Stock Exchange (TSE) surged by 24.5 percent over the first ten months of the last Iranian calendar year compared to the same period of last year.