– According to Iran’s Statistics centre data, the monthly point to point inflation rate of the Iranian economy (Jun-Jul 2018) reached 13.8% and broke its single digit pattern of recent years. The inflation rate of Tir month (Jun-Jul 2018) also hiked to 4.4% which showed a meteoric rise contrary to other months.
– Privatization Organization of Iran announced that in a bill offered to the parliament it is suggested that Justice shares should be freed and tradable on Iran Capital Market in from on an ETF. This idea would eventually lead to the elimination of provincial investment companies.
– In the unofficial news, it seems that the Iranian Parliament is firm to pass the FATF related amendments after all. Rumours have that subsequent to the reforms made by the guardian council, the parliament has passed today the amendment with 11% more votes “Ay” on this controversial directive.
– In an attempt to direct the unleashed money supply of the Iranian society towards production and reasonable markets, the Ministry of economic affairs comes with three major incentives for Iran Capital Market in order to make that attractive again in the eyes of investors:
– In an attempt to cover Iran from the US JCPoA pullout, the EU is to give Iran access to an EUR 80 bn worth of credit through EIB entity. EIB is a specialized risk management entity which backs the European small to medium-sized enterprises (SMEs). The knowledge enterprises and small businesses of Iran (Iran SMEs) are the main targets of this credit line. As another solution to preserve Iran nuclear deal, the EU has also updated its blocking statute annexe on this deal, which protects EU firms against US punishment for entering into business with Iran; this statute will come into force on August 6th 2018 concurrent with the first series of US sanctions are due.
– In a gathering with Iranian and foreign economic practitioners and representatives, Iran secretary of state announced three economic commitments made by the EU to Iran keeping the JCPoA achievements intact:
– Isfahan Steel Company, listed on Iran Fara Bourse with ZOBZ ticker, is to finance its working capital needs via Sukuk Salam securities to be issued on Iran debt market. This issue will be carried out by the end of 1397 (2018/19) and worth IRR 3,000 bn (USD 70 mn). Moreover, the company is to clear a massive amount of its debts (IRR 35,000 bn = USD 808 mn) with its claims from social security organization that could have huge impacts on the firm’s financials.
– After the recent policy to unify the USD/IRR rate at 42,000 on Iran economy, there were massive misuses of this subsidize rate by importers. Reports show that several violations of law happened since then where importers sell their subsidized goods at USD/IRR free market rate. Now the administration is to stand against these rents and for that reason, any import order placements with official FX rate is banned until after further notice.